The ringgit, which was firmer against the US dollar throughout the week, is likely to start the new year higher next week, dealers said.
They said the local unit would remain firm and trade between 3.08 and 3.06 levels in the near term on the back of strong economic fundamentals, robust economic recovery and rising interest rate.
This region would be more appealing to investors especially foreign institutions amid the uncertain outlook of the global economic and financial crisis recovery in the US as well as Europe, a dealer said.
Meanwhile, the strengthening of the local unit was due to the widening interest rate differentials between Malaysia and the advanced economies, a forex analyst said.
He said the greenback's losses were downplayed to low liquidity as many investors were already out of the market for the long new year break.
The local market was closed on Friday following Prime Minister Datuk Seri Najib Tun Razak's announcement, declaring it as a public holiday after Malaysia's maiden victory in the Asean Football Federation Suzuki Cup championship on Wednesday.
For the just ended week, the ringgit closed higher against the US dollar at 3.0830/0880 on Thursday compared with 3.0930/0980 last Friday.
It fell against the Singapore dollar to 2.3831/3872 from 2.3783/3827 last Friday and also against the Japanese yen to 3.7814/7880 from 3.7306/7384.
The ringgit appreciated against the British pound at 4.7771/7861 from 4.7781/7870 last Friday but depreciated against the euro to 4.0828/0901 from 4.0636/0708 previously.
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