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If the margins are relatively sharp and a bit raised relative to the central area, it might be "ringworm", a superficial fungal infection of the skin that typically does not itch much and can be cleared with the use of a topical antifungal (e.g. miconazole, econazole) twice daily for 3-5 weeks.
Hello. I am Dr. Venkat Attili, Dermatologist and Dermatopathologist with over 10 years of experience in this field. I am here to assist you and will answer your questions to your complete satisfaction. Thanks for the picture, which is typical of a condition called disoid eczema.
This isn't fungal or infective (Lyme's). Do not worry.
I would suggest using petroleum jelly mixed in equal amounts with 1% cortisone cream 4 times a day. It should clear up within a few weeks. Nothing to worry. Might have just been triggered by dry skin.
Hope this helps. Do keep me posted & get back if you have any further questions or feel that I have missed out anything. I will be here to provide ongoing advice as necessary. Best wishes.
Discoid eczema is usually very itchy. I would suggest you get a scraping to distinguish it from tinea corporis (ringworm). Treatment of these two conditions is different. The former is often treated with steroid creams or antibiotics, the latter with antifungals...so it would be helpful to get a more definitive diagnosis.