The ringgit opened stable against the US dollar, driven by the Malaysian government's pragmatic move to balance fiscal discipline and cost of living through targeting fuel subsidies.
The adjustment measure, which took effect on April 1, was taken as a proactive response to the ongoing conflict tensions in West Asia.
At 10:18 am, the ringgit was trading at 4.0050, down 0.33% against the US dollar since opening early Friday trading in the Asian session.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced a temporary adjustment of the monthly purchase limit for BUDI95 to 200 litres compared to 300 litres previously.
According to Anwar, this quota reduction does not affect the majority of the people because almost 90% of consumers use less than 200 litres of petrol per month.
At the same time, the MADANI government has assured that the price of subsidized BUDI95 petrol will remain unchanged at RM1.99 per litre.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the move reflected the government's efforts to maintain fiscal discipline without burdening households.
He also noted that the government's proactive measures in dealing with the chain of conflict effects in Iran are expected to give a positive boost to the ringgit.
At the opening, the ringgit was trading higher against other major currencies.
It rose against the British pound to 5.3143/3403 from 5.3301/3348, surged against the Japanese yen to 2.4951/5077 from 2.5025/5049 and strengthened against the euro to 4.5969/6194 from 4.6140/6180 previously.
Meanwhile, the ringgit was trading stronger against ASEAN currencies.
It increased against the Singapore dollar to 3.0994/1148 from 3.1102/1132 and rose against the Thai baht to 12.0868/1566 from 12.1529/1695.
It also increased against the Indonesian rupiah to 235.7/237.0 from 236.1/236.4 and edged up against the Philippine peso to 6.61/6.65 from 6.62/6.63 previously.
