KUALA LUMPUR: The foreign exchange market is expected to remain cautious next week, with the ringgit likely to oscillate around 4.00 to 4.05 against the US dollar amid ongoing uncertainties over the war in Iran, which has entered its fifth week.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this followed the release of the United States Non-Farm Payroll Data last night, which would guide the US Federal Funds Rate toward the end of April.

According to data released by the US Bureau of Labour Statistics, the US economy added 178,000 jobs in March, surpassing expectations of 60,000.

However, February’s figure was revised lower to a decline of 133,000 jobs from the previously reported drop of 92,000.

The US unemployment rate edged down to 4.3 per cent from 4.4 per cent.

The latest data reinforced expectations that the Federal Reserve will remain patient before implementing any rate cuts amid persistent oil-driven inflation risks.

This has led traders to scale back expectations for rate cuts and increasingly priced in a prolonged pause, with interest rates now seen remaining unchanged through 2026, which could lend further support to the US dollar.