USD/MYR has shed 138 pips and last.......>

DOLLAR-MYR: USD/MYR has shed 138 pips and last trades at MYR4.2012. A softer USD

has helped take some pressure off the pair, as Friday's late-doors statement

from Fed Chair Powell boosted FOMC easing bets. Malaysia's M'fing PMI came and

went, as it slipped a touch deeper into contraction, but accompanying note said

that "there's a good chance that the worst of the supply shortages are over."

- Malaysian political shake-up remains in focus. Muhyiddin Yassin was sworn as

new PM on Sunday, but uncertainty remains. His appointment drew the ire of

predecessor & caretaker premier Mahathir, who claimed he has the support of most

lawmakers. Mahathir said that he will request a special sitting of parliament

and signalled that he could call a vote of confidence in Muhyiddin.

- The rate probed the water below MYR4.2000 & bears continue to eye a convincing

break below the level. This would open up the 38.2% retracement of the Jan 20 -

Feb 26 rally at MYR4.1702. On the flip side, bulls look for a rebound towards

the Feb 26 multi-month peak at MYR4.2435.

- The BNM is set to deliver its monetary policy decision on Tuesday. Elsewhere,

Malaysia's trade balance is due on Wednesday.