Ringgit likely to hover around 3.80 next week

The ringgit is expected to maintain around the 3.8 level against the US dollar next week, said dealers.

A dealer said the latest news from the US Federal Reserve that it remained firm on a possible interest rate hike this year would see the greenback appreciating further.

"The focus will return to the greenback over the US Federal Reserve (Fed) rate hike timing after a debt deal between Greece and its international lenders are concluded," he said.

He said most investors expected the Fed to start raising rates later this year, in contrast to the European Central Bank and the Bank of Japan which were seen continuing with their ultra-loose monetary policies for the less-bearish future.

Meanwhile, the euro is expected to trade easier against the local unit next week after Greece's Parliament approves the austerity plan demanded by its lenders on Thursday.

For the just-ended holiday shortened week, the ringgit was traded cautiously against the greenback while against other major currencies, it traded mostly higher.

It fell against the US dollar to 3.8060/8080 from last Friday's 3.7925/7955, but weakened against the sterling pound to 5.9431/9473 from 5.8628/8682 but strengthened against the euro to 4.1501/1534 from 4.2135/2183 last Friday. It rose against the Singapore dollar to 2.7844/7879 from 2.8091/8117 last Friday and appreciated versus the yen to 3.0708/0737 from 3.1045/1080 last week.