USD/MYR Grinds Higher, Moving Away From YtD Lows

Spot USD/MYR printed fresh YtD lows last Friday, but demand for the greenback (stemming from risk-off developments including Covid-19/Brexit matters in the UK). A fiscal deal in DC and the easing of some social restrictions in Malaysia over the weekend have failed to prevent the pair from appreciating.

• Malaysian Defence Min Ismail Sabri Yaakob said last Friday that the gov't would re-open its sports and recreational (from Jan 1), tourism and culture (from Dec 19) sectors at limited capacity.
• Elsewhere, Bernama news agency reported that Malaysia is set to sign off on a deal with AstraZeneca today to supply Covid-19 vaccine doses covering a fifth of the country's population. Health Min Adham Baba told Bernama that the gov't aims at starting inoculating frontline workers early next year.
• The rate last trades +42 pips at MYR4.0440, with bulls looking to take out Dec 15 high of MYR4.0675, which would open up Dec 7 high of MYR4.0885. Their case is supported by the fact that the RSI has just crossed above the 30 level. Meanwhile, bears need a fall through Dec 18 low of MYR4.0310, which would bring the MYR4.0000 figure into view.
• The weekly update on Malaysian foreign reserves comes out tomorrow, while Nov CPI will be published Wednesday.