KUALA LUMPUR: The ringgit is likely to continue its upward momentum next week despite the US Federal Reserve's (Fed) decision to maintain its interest rates.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said that as the Fed maintained the status quo in the interest rates, it would give less pressure to Bank Negara Malaysia as well as the local currency.

Speaking to Bernama today, he said the ringgit's current level and uncertainty in the US economy would encourage more foreign investors to come to invest in Malaysia, besides boosting the export industry.

Meanwhile, MIDF Research Head Zulkifli Hamzah said the Fed's decision to maintain the interest rate received mixed reactions from the market.

"The ringgit has been a beneficiary based on the appreciation today (Friday), as the delay accords a breathing space for the currency to consolidate. Indeed, sentiment towards the ringgit appears to be turning for the better.

"In the offshore market, the speculative element is receding," he said.

However, he said the movement of the local currency moving forward depended on the direction of oil prices and the local situation.

"It is a combination of events...which are within and beyond our control," he added.

For the week just-ended, the ringgit strengthened against the US dollar to 4.2030/2110 from 4.3150/3200 last Friday.

The local unit appreciated against the Singapore dollar to 3.0211/0273 from 3.0510/0569 last Friday and rose against the yen to 3.5242/5315 from 3.5812/5868 last week.

It strengthened against the pound sterling to 6.5697/5831 from 6.6576/6679 last week and went up against the euro to 4.8112/8208 from 4.8716/8781 last Friday. --Bernama