Malaysia Reports Record Covid Deaths, But Three Regions Move To Phase 3 Of Reopening Plan

Spot USD/MYR barely changed as we type, last seen at MYR4.2250, with local participants pondering the local political chaos and mixed news from the Covid-19 front. From a technical perspective, bears continue to eye Jul 30 low of MYR4.2188 for initial support and a break here would open up Jul 15 low of MYR4.1955. Conversely, gains past Jul 29 high of MYR4.2405 would encourage bulls to take aim at Jul 21 high of MYR4.2440.

• Malaysia declared record highs in both Covid-19 fatalities (219) and patients treated in intensive care units (1,063) on Monday, but there were some positive news as well. PM Muhyiddin announced that Labuan, Perlis and Sarawak will move into Phase 3 of the National Recovery Plan (i.e. restrictions in these territories will be relaxed further) from Aug 4 after meeting thresholds related to local Covid-19 outbreaks. Muhyiddin also said that the National Security Council is working on easing restrictions for fully vaccinated residents and will unveil the details in "near future".
• Muhyiddin is facing political headwinds after shutting down parliament again. More than 100 MPs appeared by the parliament buildings yesterday demanding the PM's resignation, but were turned away by riot police. The Straits Times reported that several UMNO MPs are plotting an "internal coup" to replace Muhyiddin with current Dep PM Ismail Sabri.
• Bank Negara Malaysia will release their latest foreign reserves data this Friday.