Ringgit & KLCI Finish Higher As Anwar Becomes PM, Muhyiddin Demands Proof Of Majority Support

Spot USD/MYR dropped to its lowest point since early September after the Royal Palace announced the appointment of Pakatan Harapan's Anwar Ibrahim as the nation's new Prime Minister, ending the political turmoil that ensued after an inconclusive general election.

• The rate finished 845 pips lower at MYR4.4908, slightly above intraday lows of MYR4.4838. Bears now look for further losses past Aug 26 low of MYR4.4663 and Aug 11 low of MYR4.4355. On the topside, focus falls on Nov 21 high of MYR4.5877. The RSI has returned into oversold territory and last sits at 24.69.
• The FTSE Bursa Malaysia KLCI Index soared 4.0% through the day, hitting resistance from Sep 12 high of 1,501 and closing in on its 200-DMA, which intersects at 1,506 and has been intact since early June.
• Anwar Ibrahim has been sworn in as Malaysia's 10th Prime Minister and is preparing to form his Cabinet, even as Perikatan Nasional leader Muhyiddin continues to call on Anwar to prove that he has the support of majority of lawmakers. As Anwar was taking oath in the Royal Palace today, Muhyiddin held a press conference insisting that he commanded the support of 115 MPs, three more than needed for a simple majority.