Kuala lumpur: The ringgit is expected to trade in a tight band next week, hovering between RM3.94 and RM3.96 as investors await further economic data from the United States, according to an economist.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid highlighted that the focus next week would be on the US Federal Open Market Committee (FOMC) meeting, scheduled for April 28 and 29. He noted that most economists anticipate the Fed Fund Rate (FFR) to remain unchanged at 3.75 per cent.

While such a decision has been priced in by the market, Mohd Afzanizam mentioned that the latest assessment would serve as a guiding principle for how the FFR would evolve going forward. He emphasized that data points such as the Conference Board Consumer Confidence Index, ISM manufacturing index for the manufacturing sector, and Personal Consumption Expenditures (PCE) inflation will also be closely monitored, as these data series will be released next week.

Mohd Afzanizam advised that, as a result, the dollar-ringgit is expected to maintain its narrow range bias, with market participants likely to remain cautious. On Friday, the ringgit eased against the US dollar at 3.9630/9670, compared with 3.9505/9545 at the end of the previous trading week.

Throughout this week, the local note traded firmer against a basket of major currencies. It rose against the British pound to 5.3429/3483 from 5.3454/3508, appreciated against the euro to 4.6312/6358 from 4.6588/6635, and gained versus the Japanese yen to 2.4808/4834 from 2.4838/4865.

Meanwhile, the ringgit was traded mostly higher against its ASEAN peers. It inched up versus the Singapore dollar to 3.1009/1043 from 3.1053/1086, strengthened against the Thai baht to 12.2183/2363 from 12.3084/3274, and elevated against the Philippine peso to 6.52/6.53 from 6.58/6.59 previously, while it fell versus the Indonesian rupiah to 230.0/230.3 from 229.8/230.1.