KUALA LUMPUR: The ringgit is expected to trade within the RM4.09 to RM4.11 range this week as investors await key economic data releases.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the main focus for investors will be the United States labour market data, mainly the non-farm payroll or P figures and the unemployment rate.

He added that investors would be watching the upcoming US Institute of Supply Management or ISM Index survey data for the manufacturing and services sectors.

“The US Conference Board Consumer Confidence Index will also be released this week. On that note, traders and investors will be observing the incoming data points and reflecting on whether the case for an interest rate hike is building up or otherwise,” he said.

Similarly, Kenanga Investment Bank Bhd

said investors are likely to use this week’s labour market data to reassess whether current hawkish Federal Reserve pricing has become excessive.

The investment bank said lower crude oil prices and easing geopolitical risk premiums should cap further US dollar upside this week.

“Our baseline assumes the fragile US-Iran ceasefire broadly holds and oil shipments through the Strait of Hormuz continue without major disruptions.

“Therefore, we expect the US dollar-ringgit exchange rate to trade within RM4.08 to RM4.12, with risks tilted towards gradual ringgit appreciation as the current greenback rally nears its peak,” it said in a research note.

On a Friday-to-Friday basis, the ringgit gained to 4.0860/0910 against the US dollar from 4.1340/1395 a week earlier. The local currency traded higher against a basket of major currencies during the week.