The ringgit strengthened at the close today as the US dollar lost traction against a basket of major currencies amid concerns over interest rates and the global inflation outlook.

At 6pm, the local currency rose to 4.4745/4780 against the greenback from yesterday’s close of 4.4885/4915.

It was reported that the safe-haven US dollar retreated from its 20-year high after a recovery in the euro.

The latest figure showed Eurozone consumer confidence for August in line with forecast versus July’s lows, while Spanish inflation slowed to 10.4 per cent year-on-year despite remaining high.

Preliminary Germany inflation data for August is due later today.

At home, the inflation print was in line with market expectations of 4.4 per cent in July.

An analyst told Bernama that stable oil prices had also helped to propel the ringgit to remain higher today.

The Organisation of the Petroleum Exporting Countries has indicated that it will decrease production if a deal with Iran to lift sanctions comes to pass.

The crude Brent price stood above US$102 (RM448) per barrel.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

The local unit was higher versus the Singapore dollar at 3.2073/2103 from yesterday’s close of 3.2100/2126 and appreciated against the Japanese yen to 3.2335/2363 from 3.2385/2409.

The local unit declined against the euro to 4.4884/4919 from 4.4705/4735 yesterday and vis-a-vis the British pound to 5.2472/2514 from 5.2439/2474.

Source: Bernama