Economists: The US dollar is expected to trade around 4.05 against the Malaysian ringgit.

Economists at Kenanga stated in a report that the USD to Malaysian Ringgit exchange rate may continue to hover around 4.05 next week. They noted that the upcoming US non-farm payroll data will be closely watched for signs of a slowdown in the labor market momentum. Despite speculation in the market about a potential rate hike by the Federal Reserve due to rising energy costs, Chairman Jerome Powell indicated that medium-term inflation expectations remain stable, suggesting there is no entrenched tightening bias. They also added that assuming tensions in the Middle East ease in the third quarter before the US midterm elections, improved energy supply could provide support for the Ringgit, leading to the market beginning to anticipate a possible rate cut by the Fed in the fourth quarter. The US dollar fell 0.1% to 4.0345 Ringgit.