The ringgit is expected to strengthen against the US dollar next week buoyed by expectation of higher demand for Asian assets after the US' Federal Reserve announced a third round of quantitative easing, dealers said.

A dealer said the ringgit has gained more than two per cent against the greenback amid optimism over the quantitative easing and better sentiment from the Euro zone.

"The US Federal Reserve's decision to keep monetary policy accommodative until mid-2015 and to buy an additional US$40 billion in mortgage debt every month will keep borrowing costs low to stimulate the country and global growth higher," he said.

He added that the victory of Euro zone-friendly party following Dutch election and the German constitutional court's decision not to block the bloc's bailout fund are adding to the bullish mood next week.

On Friday-to-Friday basis, the ringgit rose against the
greenback to 3.0400/0440 from 3.1100/1150.

It rose against the Singapore dollar to 2.4898/4937 from last week's 2.5066/5123 and firmed against the Japanese yen to 3.9070/9161 from 3.9392/9450.

The local unit appreciated against the British pound at 4.9213/9298 from 4.9667/9765 previously but depreciated against the euro to 3.9626/9688 from 3.9397/9473. -- BERNAMA