The Malaysian ringgit has fallen by......>

DOLLAR-MYR: The Malaysian ringgit has fallen by roughly 1.5% vs the dollar in

offshore trading following the shock election result which suggests opposition

coalition leader and long-serving former Prime Minister Mahathir Mohamed has won

enough parliament seats to form the next government. 

- The MYR has performed well this year amid relatively prudent monetary and

fiscal policies which will now come under pressure as Mahathir has pledged to

scrap the recently-implemented goods and services tax. A widening fiscal deficit

may impede the central bank's ability to foster higher real interest rates. 

- Technically, USDMYR's next level of resistance comes in at the 200DMA,

currently at 4.079. With regional FX already showing sings of a bearish reversal

against the dollar, the path of least resistance is likely to be for a weaker

ringgit at investors digest the implications of the country's new political

leadership.