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Officials To Debate Full Lockdown, Businesses Want Tighter Rules Instead

MYR

USD/MYR re-opened on the backfoot following yesterday's broad-based greenback sales. The rate last sits -52 pips at MYR4.1407, with local news flow dominated by reports surrounding Malaysia's Covid-19 situation/potential new restrictions.

  • PM Muhyiddin chairs a meeting today to discuss implementing a nationwide Movement Control Order (MCO), Bernama reported Thursday citing Law Min Takiyuddin. Meanwhile, Malaysia's fourth-largest city Ipoh was placed under a full lockdown for two weeks from Saturday.
  • Some of Malaysia's major industry associations called upon the gov't to implement tighter Covid-19 protocols instead of a full nationwide lockdown after Thursday saw another record increase in the daily Covid-19 case count. SME Association of Malaysia Pres warned that a full lockdown "will spell the immediate end for all businesses across the nation".
  • Bank Negara Malaysia will publish the latest foreign reserves data later today.
  • From a technical perspective, a fall through the 50-DMA at MYR4.1240 is needed to give bears some relief & bring the 200-DMA at MYR4.1111 into play. Bulls look for a jump above yesterday's high of MYR4.1475 before targeting Mar 31 cycle high of MYR4.1590.

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