KUALA LUMPUR, April 27 ― The ringgit is expected trend around 4.77 to a US dollar next week as the greenback maintains its strength, and as market continues diminishing the expectations of interest rate cuts particularly in the United States (US).

SPI Asset Management managing director Stephen Innes said, however, much hinges on the responses of global bond markets as many traders are currently factoring in a level of central bank alignment with the US Federal Reserve (Fed).

He said this anticipation of central bank synchronicity could dampen the momentum of the strong US dollar in the coming days.

“The primary concern for the ringgit is whether the Fed will adopt a hawkish stance and rule out rate cuts at the upcoming Federal Open Market Committee (FOMC) meeting.

“However, it is likely that the Fed will wait to gauge US employment data and the next series of consumer price index (CPI) figures before committing to a fully hawkish stance,” Innes told Bernama.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said next week would be a data heavy week and markets would be very cautious and possibly leaning towards the safer side, with the US dollar probably well supported.

“On that note, the ringgit-US dollar shall linger around RM4.77 next week,” said Mohd Afzanizam.

Besides the FOMC meeting, investors would also be looking out for the US Institute of Supply Management (ISM) Index for Manufacturing as well as the nonfarm payroll (NFP) and unemployment rate.

On a Friday-to-Friday basis, the ringgit traded higher to 4.7650/7710 versus the greenback from 4.7810/7855 a week earlier.

The local note moved mostly lower against other major currencies, tracking the US dollar Index (DXY), US economic data indicators such as the gross domestic product (GDP) as well as regional central banks’ news on interest rates and currencies.

The local note rose vis-a-vis the Japanese yen to 3.0408/0451 from 3.0947/0978 a week earlier, but fell against the British pound to 5.9644/9719 from 5.9533/9589 and slid against the euro to 5.1157/1221 from 5.0961/1009 previously.

The ringgit however traded mostly higher against ASEAN currencies.

It appreciated to 12.8902/9120 against the Thai baht from 12.9668/9847 last Friday, climbed versus the Philippine peso to 8.26/8.27 from 8.30/8.31 and was flat against the Indonesian rupiah at 293.9/294.4.

The local note also rose vis-a-vis the Singapore dollar to 3.5021/5068 from 3.5113/5149 a week earlier. ― Bernama