The ringgit is expected to trade within a narrow range next week due to the uncertain global economic environment but has the potential to appreciate further on positive economic indicators, dealers said.

RHB Research in a note said the ringgit will likely gradually gain strength after the uncertainties clear out, underpinned by the sustained large current account surplus in the balance of payments.

"With stable capital flow, the ringgit is fundamentally supported at around RM3.00 against the US dollar," it added.

The research house said in the near term, the ringgit is expected to be weak and its direction will continue to be determined by the flows of short-term capital, influenced by development in the euro-debt crisis and the US economy.

"The impending general election locally will also influence the direction of the ringgit," it said.

Throughout the week, the ringgit moved in a narrow range of around 3.0920/0950 to 3.0980/1000 against the greenback, attributed to concerns over a currency war in anticipation of more aggressive monetary policy easing to be carried out by Japan, uncertainties over Italy's political situation, the Cyprus bailout deal and mixed US economic data.

The local unit closed the week at 3.0920/0950 against the US dollar, up from 3.1110/1140 recorded last Friday.

Meanwhile, the local note was higher against other major currencies.

It rose against the Singapore dollar to 2.4946/4972 compared with 2.4882/4908 last Friday and appreciated against the Japanese yen to 3.2869/2915 against 3.3011/3047 previously.

The local currency also improved against the British pound to 4.6964/7019 from 4.7247/7302 last Friday and gained against the euro to 3.9633/9678 versus 4.0160/0202 previously. -- BERNAMA