Malaysia Determined To Keep Transitioning To Endemic Phase Of Covid-19 Outbreak

Spot USD/MYR has slipped this morning and last operates -15 pips at MYR4.1835, with Malaysia looking to continue easing Covid-19 restrictions despite rising daily Covid-19 cases.

• Malaysia's National Recovery Council, an advisory body led by former PM Muhyiddin, proposed re-opening borders to international travellers from next month. The Council said that visitors should be exempt from mandatory quarantine and should only be required to test before and after arrival.
• Separately, Defence Min Hushammuddin told reporters that Malaysia must stick with its plans to transition to the endemic phase of the Covid-19 outbreak, as a surge in new cases has not resulted in a large number of hospitalisations. The official revealed that Malaysia will drop the requirement to conduct temperature checks and provide record books at the entrances to public spaces this week.
• From a technical perspective, a retreat under Feb 4 low/200-DMA at MYR4.1762/50 would provide a signal to bears to take aim at Jan 13 low of MYR4.1720. On the flip side, a jump above Jan 27 high of MYR4.2070 would bring Jan 7 high of MYR4.2175 into play.
• Looking ahead, Malaysia's quarterly GDP & BoP current account balance will be published on Friday.