Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the rationalisation exercise signalled the government’s commitment to fiscal consolidation while remaining mindful of its impact on the rakyat.

“The measured approach shows that the government is pragmatic in its efforts to fix its finances. It can be deemed credit-positive, which should translate into positive sentiment towards the ringgit in the medium to long term,” he told Bernama.

At the close, the ringgit was higher against a basket of major currencies.

At 6pm, the local note stood at 4.1945/4.2040 versus the greenback, compared with 4.2040/4.2115 at Friday’s close.

It rose versus the Japanese yen to 2.8364/2.8430 from 2.8419/2.8471 at Friday’s close, firmed to 5.6630/5.6758 against the British pound from 5.6775/5.6876, and strengthened to 4.9390/4.9502 vis-à-vis the euro from 4.9447/4.9536.

The local note was also firmer against Asean currencies.

It advanced to 3.2688/3.2764 versus the Singapore dollar from 3.2744/3.2805, appreciated to 13.1890/13.2243 against the Thai baht from 13.1973/13.2271, edged up to 252.5/253.1 vis-à-vis the Indonesian rupiah from 253.2/253.8, and strengthened to 7.35/7.37 against the Philippine peso from 7.36/7.38.