Kuala lumpur: The ringgit is expected to trade in a tight range, hovering around RM3.95 to RM3.96 next week as the market anticipates more catalysts, including the upcoming US economic data. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said the market focus will be on January's US nonfarm payroll (NFP), with consensus estimates at 68,000 jobs and an unemployment rate expected to hold at 4.4 per cent.
According to BERNAMA News Agency, the absence of significant deterioration in US jobs data leaves little urgency for the Federal Reserve to ease monetary policy immediately, suggesting the US Dollar Index (DXY) should remain supported in the near term. The investment bank said next week's focus will be on the delayed US labour data and softer private-sector jobs, which are expected to meet estimates and cause no surprises for the US dollar.
Domestically, Malaysia's Industrial Production Index (IPI) and the final fourth-quarter 2025 gross domestic product (GDP) report are due, which are expected to reinforce the growth narrative, supporting business activity and lending confidence to the ringgit despite ongoing external foreign exchange headwinds. This week, the ringgit traded between RM3.9295 and RM3.9440. On a week-on-week basis, the ringgit ended the week flat against the US dollar to close at 3.9440/9525 compared with 3.9440/9500 last Friday.
The local note traded higher against a basket of major currencies this week. It gained against the Japanese yen to 2.5111/5167 from 2.5562/5603, appreciated vis-a-vis against the British pound to 5.3548/3663 from 5.4163/4245, and rose versus the euro to 4.6508/6608 from 4.6957/7029 a week earlier. The ringgit traded mostly higher compared with its ASEAN peers. It went up versus the Singapore dollar to 3.0965/1034 from 3.1077/1127, surged against the Thai baht to 12.4609/4933 from 12.5250/5544, was higher compared with the Indonesian rupiah at 233.6/234.3 from 234.9/235.4, but it eased against the Philippine peso to 6.73/6.75 from 6.69/6.71 previously.