Ringgit Returns From Holiday, USD/MYR Swings Into Gain

Spot USD/MYR re-opened lower but has more than erased losses since, with volatility increased as the pair digested the latest news flow after yesterday's public holiday in Malaysia. The rate last trades +50 pips at MYR4.0510.

• Moody's affirmed Malaysia at A3 (outlook stable) and said they expect Malaysia's medium-term growth prospects to "remain strong." FinMin Zafrul commented that the decision reflects Malaysia's "strong fiscal discipline and robust medium-term growth prospects."
• Malaysian Defence Min Ismail Sabri Yaakob announced that businesses permitted to operate under the MCO can extend their opening hours to 10pm from today. Before they were required to close at 8pm. The Minister added that Malaysia will increase penalties for breaching Covid-19 rules.
• The state of Selangor declared a new high in daly Covid-19 infections on Thursday, with local Health Director-General noting that "about 80% of the new cases emerged from existing clusters and through close contact screening on the field" (via the Star).
• A break above the 50-DMA at MYR4.0542 would signal potential for further gains towards Jan 12 high of MYR4.0760. On the flip side, a clean break under Jan 29 low of MYR4.0290 would bring Jan 4 low of MYR3.9957.
• Malaysian trade data comes out later today.
• Next week, focus moves to Markit M'fing PMI report, due Monday.