Ringgit likely to hover around 3.05-3.07

The ringgit is likely to move within a narrow range next week and hover around the 3.05-3.07 level against the US dollar on expectation of a stronger US economic recovery, dealers said.

A dealer said US non-farm payrolls data and the continuous euro debt crisis would also influence the market's movement.

"However, the market still believes the performance of Asian currencies and sentiment will be strong," he said.

He said the ringgit, which posted one of its biggest gains against the greenback last year, was expected to continue the gradual uptrend this year, backed by Malaysia's healthy current account surpluses as well as steady international reserves.

"Improving equity market and solid economic fundamentals are expected to provide further impetus to the local currency," he said.

On a Friday-to-Thursday basis, the ringgit was higher against the US dollar at 3.0685/0715 from 3.0830/0880.

The market was closed last Friday for a public holiday.

The local unit kicked off the first trading session of 2011 higher on bullish sentiment in the Asian currencies.

However, it was range-bound throughout the week following strong US data that fuelled the US$ to extend gains and the absence of local market-moving factors pressured the ringgit.

The local currency ended Friday higher against the US dollar at 3.0685/0715 from last Thursday's 3.0830/0880.

It climbed against the Singapore dollar at 2.3648/3683 from 2.3831/3872 the previous week and gained against the yen to 3.6727/6771 from 3.7814/7880 last week.

It was also higher against the British pound at 4.7365/7427 from 4.7771/7861 and rose against the euro at 3.9826/9871 from 4.0828/0901. -- Bernama