Ringgit expected to continue rally

The ringgit is expected to be steady against the US dollar next week, supported by commercial buying, dealers said.

They said the expectation that Asian currencies would continue to rally against the greenback also provides some support to the local unit.

According to a dealer, the greenback is expected to soften in overseas markets on speculation that the US Federal Reserve would hold interest rates near zero, well into next year after the unemployment rate in the country exceeded 10 per cent for the first time since 1983.

On Friday, the US government reported that American employers cut a deeper-than-expected, 190,000 jobs in October.

During the week just ended, the ringgit started the week on a lower note as the US dollar strengthened against other major currencies.

However, the local currency managed to end the week on a higher note in line with the rally among regional currencies.

On a week-to-week basis, the ringgit strengthened against the greenback at 3.3980/4020 compared with the 3.4100/4150 recorded last Friday.

Against the Singapore dollar, the local unit was little changed at 2.4392/4455 from 2.4397/4457 last week but was lower against the Japanese yen at 3.7506/7570 from 3.7481/7560 previously.

The ringgit also weakened against the British pound to 5.6471/6548 from 5.6405/6505 last week and was lower against the euro at 5.0617/0609 from 5.0563/0644 previously. -- Bernama