Kuala lumpur: The ringgit is likely to trade cautiously next week, hovering between RM4.09 and RM4.11 against the US dollar after strengthening by 0.39 percent week-on-week. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that a series of key United States data releases next week will provide fresh guidance for market participants.

According to BERNAMA News Agency, these data releases include the Nonfarm Payrolls (NFP), Consumer Price Index (CPI), Personal Consumption Expenditures (PCE), as well as the University of Michigan Consumer Sentiment Index (CSI). Additionally, a series of speeches by US Federal Reserve officials are expected, where they may express reservations regarding inflationary risk, which remains above the two percent level.

Earlier this week, the local note hovered at RM4.11 on Monday and began to weaken on Wednesday ahead of the Federal Open Market Committee meeting. It rebounded after the Fed cut the interest rate, bringing the local note to 4.1040 on Thursday. The ringgit strengthened further by the end of the week, reaching the 4.09 level on Friday, hitting a new four-year-and-seven-month high, supported by positive Malaysian economic data.

On a weekly basis, the ringgit showed a strengthening trend against the greenback, closing higher at 4.0945/1005 compared to 4.1105/1140 the previous week. The local note also traded mostly higher against a basket of major currencies, showing gains against the yen and British pound, while slipping against the euro.

The ringgit also showed an upward trend against its ASEAN peers, appreciating versus the Indonesian rupiah, Singapore dollar, and Philippine peso. However, it weakened against the Thai baht, trading at 12.9589/9845 compared to 12.9054/9221 a week ago.