The local note’s rise was in tandem with the positive performance of regional currencies, which tracked the yuan’s upward trend following positive China inflation data, according to an analyst.

SPI Asset Management managing partner Stephen Innes said China’s consumer prices have decreased by 0.3% in July compared to the same period last year, the first decline since February 2021.

“However, the market response to China’s economic data has been minimal. Much of the shift in market activity is likely due to traders adjusting their positions before the release of the US consumer price index (CPI) figures.

“Stocks, bonds, and currency markets tend to react strongly to CPI results, which can lead to significant market fluctuations,” Innes told Bernama.

For the ringgit, he highlighted that it would be beneficial for the CPI inflation print to be lower than the consensus.

The local note, he said, had also received support from rising oil prices following the US Energy Information Administration’s monthly report, which predicted a 1.9% increase in the US gross domestic product growth in 2023.

This is higher than the previous forecast of 1.5%, said Innes.

At 6pm, the local note rose to 4.5705/4.5755 against the US dollar compared with 4.5815/4.5845 at yesterday’s close.

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

It rose against the Japanese yen to 3.1897/3.1934 from 3.2027/3.2050 on Tuesday, strengthened versus the euro to 5.0175/5.0230 from 5.0264/5.0297 and advanced vis-a-vis the British pound to 5.8187/5.8251 from 5.8332/5.8370 previously.

At the same time, the local unit traded higher against other Asean currencies.

The ringgit went up versus the Singapore dollar to 3.3979/3.4021 from 3.4030/3.4055 at Tuesday’s close and appreciated against the Indonesian rupiah to 300.9/301.3 from 301.0/301.3 yesterday.

It improved vis-a-vis the Philippine peso to 8.13/8.14 from 8.14/8.15 on Tuesday and gained against the Thai baht at 13.0791/13.0998 from 13.1050/13.1184 previously.