USD/MYR is pushing towards y'day's.......>

DOLLAR-MYR: USD/MYR is pushing towards y'day's highs at MYR4.2260, the rate

currently changes hands +145 pips at MYR4.2255 amid broader risk-off mood. A

break above the Feb 26 multi-month peak at MYR4.2435 would signal the resumption

of a broader bullish trend. Meanwhile, momentum indicators suggest that the rate

may be overbought, which bodes well for the bearish cause. On the downside, the

focus initially falls on MYR4.2000, a psychological level & Feb 24 trough.

- Malaysia's caretaker PM Mahathir delivered a MYR20bn fiscal stimulus package

yesterday. Additional spending will be dedicated to mitigating the impact of the

Covid-19 outbreak. Mahathir informed that the gov't revised its GDP growth

forecast & now expects it to fall within the 3.2-4.2% range this year vs. the

previous projection of 4.8%. Fiscal deficit target has been pushed higher still,

to 3.4% from the already revised 3.2% of GDP.

- Mahathir also touched upon domestic political crisis, noting that parliament

will convene on Monday to decide whether to name a new premier or call a snap

election. The largest opposition party said that they expect a poll.

- Looking ahead, the BNM delivers its monetary policy decision next week.