Kuala lumpur: The ringgit is projected to trade within a narrow range of RM3.95 to RM3.97 against the US dollar next week, as trading activity is expected to be subdued during the holiday-shortened week. Bank Muamalat Malaysia Bhd's chief economist, Mohd Afzanizam Abdul Rashid, emphasized that the main focus for the upcoming week would be the United States labour market, particularly the Nonfarm Payrolls (NFP) report and the unemployment rate.

According to BERNAMA News Agency, Mohd Afzanizam noted that the current economic environment indicates that inflation in the US is likely to remain high, with Personal Consumption Expenditures (PCE) inflation at 3.8 per cent in April, significantly above the US Federal Reserve's (Fed) two per cent target. "As such, labour market data will be crucial in assessing the case for further monetary policy tightening," he added.

On a Friday-to-Friday basis, the ringgit ended higher at 3.9625/9670 against the US dollar, compared to 3.9655/9700 the previous week. Throughout the week, the local currency traded mostly stronger against a basket of major currencies. It appreciated against the British pound to 5.3165/3225 from 5.3245/3305 and strengthened versus the Japanese yen to 2.4874/4904 from 2.4925/4954, though it weakened against the euro to 4.6127/6180 from 4.6012/6064 previously.

Against ASEAN currencies, the ringgit showed a mixed performance. It rose against the Indonesian rupiah to 221.6/221.9 from 223.8/224.1 but eased against the Singapore dollar to 3.1010/1048 from 3.0985/1023. It also slipped against the Thai baht to 12.1732/1926 from 12.1421/1611 and declined against the Philippine peso to 6.43/6.44 from 6.42/6.44.

The market will be closed on June 1 and 2 due to the King's Birthday and Wesak Day holidays, before resuming operations on June 3.