KUALA LUMPUR, July 27 — The ringgit closed higher against the US dollar today due to stronger demand, on the back of the weakening greenback which was losing its lustre as a safe-haven currency.

The local currency finished at 4.2500/2550 against the dollar compared with 4.2620/2660 at 6pm last Friday.

In a note, Kenanga Research said the ringgit was gaining momentum as the US dollar was losing its safe haven appeal on the back of Covid-19 vaccine optimism and US-China conflict.

"In addition, the ringgit is expected to test below the 4.25 level ahead of the US Federal Reserve’s interest rate decision meeting,” it added.

The US Federal Reserve is scheduled to announce its monetary policy decision on July 30.

Meanwhile, the ringgit was traded lower against other benchmark currencies.

It fell against the Singapore dollar to 3.0808/0851 from 3.0764/0797 recorded last Friday and decreased versus the Japanese yen to 4.0346/0397 from 4.0068/0117.

The local unit depreciated against the British pound to 5.4587/4668 from 5.4268/4336 and weakened vis-a-vis the euro at 4.9746/9822 from 4.9426/9481 previously. — Bernama