KUALA LUMPUR (Oct 31): Bank Negara Malaysia (BNM) said today the ringgit appreciated 0.8% against the US dollar in September 2019, driven by net portfolio inflows by non-residents during the month.

BNM said in a statement today on the nation's monthly economic and financial highlights that in September, domestic financial markets continued to be affected by global developments and shifts in investor sentiments.

"Early in the month, signs of progress in global trade talks contributed to improved investor sentiments, leading to broad gains across financial market indicators. However, sentiments deteriorated towards the end of the month as investors turned cautious from heightened concerns over the global growth outlook and a potential escalation in global trade disputes.

"Adjustments in domestic bond yields were also marginal amid sustained demand by non-resident investors. However, the domestic equity market continued to be affected by global uncertainties with the FBM KLCI declining by 1.8% during the month," BNM said.

In currency markets today, the ringgit appreciated to 4.1760 against the US dollar at 4:11pm. At Bursa Malaysia, the KLCI rose 14.46 points to 1,594.46 at 4:16pm

BNM said today Malaysia's on-year headline inflation declined in September versus August's figure.

The central bank said September headline inflation was at 1.1% versus August's 1.5%, reflecting the lapse in the impact of the sales and services tax (SST). implementation.

"The lapse in the impact of the SST was evident for food away from home, Internet and broadband charges, and paid television services. Excluding the impact of the changes in the consumption tax policy, core inflation was relatively stable at 1.4% (August: 1.5%)," BNM said.