Malaysia's King Urges Gov't To Reconvene Parliament

Spot USD/MYR reopened sharply higher, driven by the post-FOMC impetus. Locally, the main focus has been on the call by Malaysia's royal Rulers to reconvene parliament and avoid extending the state of emergency. USD/MYR last seen +250 pips at MYR4.1418.

• Malaysia's King emerged from a meeting with the country's royal Rulers, calling for the parliament to be reconvened as soon as possible. The Conference of Rulers also said that there is no need to extend the state of emergency in Malaysia beyond Aug 1.
• Members of the ruling coalition reacted to the King's statement, with Law Min Takiyuddin noting that "His Majesty did not specify any particular date [for reopening parliament], so the Prime Minister can announce, for example, that Parliament will reopen in September or October". As a reminder, according to PM Muhyiddin's National Recovery Plan, parliament could reopen as late as in Oct. Meanwhile, Umno Pres Zahid backed the Kind's call to reconvene parliament and not to extend emergency.
• Bulls look for further gains past May 31 high of MYR4.1480, before targeting May 24 high of MYR4.1497. Conversely, bears would be pleased by a slide towards Jun 11 low/200-DMA at MYR4.1070/4.1051.