Ringgit Trades Near 2-Week Highs

Spot USD/MYR went offered Thursday amid broad-based USD weakness coupled with a delayed reaction to Bank Negara Malaysia's decision to keep their Overnight Policy Rate unchanged. The rate slid through Jan 15 low of MYR4.0325, printing worst levels since Jan 8.

• Malaysian Defence Min Ismail Sabri Yaakob announced the extension of Movement Control Order in six states and federal territories by more than a week. The MCO will be left in place through Feb 4, instead of Jan 26 as originally scheduled. The Minister cited Health Ministry data suggesting that the six territories were now red zones in terms of infectivity rates.
• FinMin Zafrul noted that Malaysia is on the right path to economic recovery, as monetary, fiscal and epidemiological measures working together to support national economy.
• USD/MYR trades +30 pips at MYR4.0320 as we type. A break above the 50-DMA at MYR4.0597 would clear the way to Jan 12 high of MYR4.0760. Conversely, bearish focus falls on the key Jan 4 low of MYR3.9957.
• Focus in Malaysia turns to the local CPI report, due later today. The main point of note going forward is Malaysia's trade report, due next Friday.