Resignation

Spot USD/MYR printed a fresh one-year high Monday, as elevated domestic political uncertainty applied pressure to Malaysian assets. The rate has added 5 pips this morning and last sits at MYR4.2375, with bulls looking for a clearance of MYR4.2445, which capped gains on Monday. Above there would open MYR4.2758, which represents Mar 23, 2020 - Jan 4, 2021 sell-off. Conversely, a dip through Aug 5 low of MYR4.2105 would give bears some reprieve.

• PM Muhyiddin's Cabinet submitted their resignation to the King on Monday, but the Premier will stay on in caretaker capacity as a snap election was ruled out owing to the Covid-19 situation. The struggle for Malaysia's top job has begun. UMNO Pres Zahid noted that the largest party is weighing "several candidates" but insisted that he won't nominate himself, while Ismail Sabri is still in the game. Malaysian media outlets reported that several party leaders received invitations for audiences with the Agong this afternoon, following the collapse of the government.
• The ongoing political saga provides the main point of note in Malaysia now.