Kuala Lumpur:The ringgit closed higher against most major currencies but weakened against the US dollar on Wednesday due to the strengthening of the greenback amid concerns over Europe's fiscal outlook.

According to BERNAMA News Agency, the ringgit eased to 4.0850/0895 against the greenback from Tuesday's close of 4.0835/0880. Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the US Dollar Index (DXY) increased by 0.42 percent to 102.26 points. This was attributed to the depreciation of major currencies like the euro, which fell 0.69 percent against the US dollar to 1.1181.

Dr Afzanizam added that worries over Europe's fiscal situation contributed to the stronger US dollar. Despite this, the ringgit has remained within a tight range against the US dollar, fluctuating between RM4.0840 and RM4.0885.

In trading against a basket of major currencies, the ringgit gained against the Japanese yen, appreciating to 2.5797/5827 from 2.5807/5837. It also rose against the British pound to 5.4049/4108 from 5.4066/4125 and strengthened against the euro to 4.5740/5790 from 4.5907/5957.

The ringgit's performance was mixed against ASEAN currencies. It increased against the Singapore dollar to 3.1919/1957 from 3.1935/1975 and strengthened against the Thai baht to 12.1217/1386 from 12.1424/1609. However, it fell against the Philippine peso to 6.51/6.52 from 6.50/6.51 and slightly decreased against the Indonesian rupiah to 228.3/228.7 from 228.1/228.4.