The ringgit is expected to further strengthen against the US dollar next week on active commercial demand from local and foreign buyers.

The ringgit is also expected to strengthen based on renewed talk of an Australian rate hike next month.

The Australian economy added 52,700 jobs in January, beating expectations of an increase of 15,000 jobs, while the unemployment rate came in at 5.3 per cent, compared to the 5.6 per cent expected.

A dealer said the ringgit is expected to go below the 3.40 level next week as focus remains strong for the local currency and also amid fears about Greeces’ debt problem and its impact on other European Union (EU) countries.

The market this week was very quiet as investors are away for the upcoming Chinese New Year holiday.

Asian currencies were mixed on caution, ahead of an EU meeting on Greece”s fiscal woes, the dealer said.

However, another dealer said, the local currency might weaken as traders would likely seek the dollar as a safe-haven, following negative news from other big economies, including that of EU countries.

For the week just ended, the ringgit was quoted higher against the greenback at 3.4160/4190 compared to last Friday’s 3.4420/4460.

On a Friday-to-Friday basis, the local currency rose against the Singapore dollar to 2.4181/4236 from 2.4205/4240 last week and rose against the Japanese yen to 3.7880/7917 from 3.8372/8434 previously.

The ringgit strengthened against the euro to 4.6546/6594 from 4.7128/7190 last Friday and also against the British pound to 5.3682/3736 from 5.4002/4082 previously. — Bernama

Source: BTimes