Kuala lumpur: The ringgit is anticipated to trade on a softer note against the US dollar next week amid persistent expectations of a possible US Federal Reserve (Fed) rate hike later this year.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the anticipation of a potential 25-basis-point increase in the federal fund rate is likely to bolster the US dollar, impacting regional currencies, including the ringgit. "Next week, we foresee similar dynamics will continue to hold," he stated.

Mohd Afzanizam mentioned that investors are set to closely observe the release of the United States Personal Consumption Expenditures (PCE) Price Index on June 26, regarded as the Fed's preferred measure of inflation. He highlighted that the inflation gauge is expected to remain elevated, which would likely keep the ringgit soft in the near term.

On a Friday-to-Friday basis, the ringgit weakened to 4.1340/1395 against the US dollar from 4.0555/0600 a week earlier. Throughout the week, the local currency traded lower against a basket of major currencies. It depreciated against the British pound to 5.4709/4782 from 5.4429/4489, eased versus the Japanese yen to 2.5636/5671 from 2.5334/5364, and weakened against the euro to 4.7376/7439 from 4.6979/7031 previously.

The ringgit also experienced a downturn against ASEAN currencies. It slid against the Indonesian rupiah to 232.2/232.5 from 227.0/227.4, eased vis-a-vis the Singapore dollar to 3.2019/2064 from 3.1602/1640, slipped against the Thai baht to 12.5856/6074 from 12.4105/4288, and declined against the Philippine peso to 6.80/6.81 from 6.67/6.68.