The Malaysian Ringgit (MYR) remains under pressure following recent announcements from U.S. President Donald Trump regarding tariffs on imports from Malaysia. The new 24% tariff is part of a broader strategy targeting several countries, causing significant concern among traders and investors in emerging Asia. As noted by market analysts, Malaysia has chosen not to retaliate directly but is working with regional partners to formulate a coordinated response, reflecting the rising tensions in global trade.
The MYR has been trading at 0.2368 against the U.S. dollar, which is 1.8% above its three-month average of 0.2327, indicating a relative strength despite the bearish external environment. Over the past few weeks, the MYR has operated within a stable range of 0.2227 to 0.2382. However, the broader sentiment surrounding emerging Asian currencies has deteriorated due to fears of an escalating trade conflict, which has negatively impacted the region, resulting in declines for peers like the Thai baht and South Korean won.
In comparison to the euro, the MYR is currently at 0.2012, which is 1.6% below its three-month average of 0.2045, reflecting softer demand against the backdrop of ongoing economic uncertainties. The pound has shown a similar trend, with the MYR at 0.1733, resting just below its average range over the past three months. Conversely, against the Japanese yen, the MYR is currently trading at 34.26, 1.9% above its three-month average. It has maintained a stable range of 32.17 to 34.55, indicating some resilience in this currency pair.
Oil prices, crucial for the Malaysian economy, have seen an uptick, with Brent Crude OIL priced at 68.80, which is 3.2% higher than its three-month average. The current volatility, with a 31.1% range from 60.14 to 78.85, reflects the complexities of the energy market, which is likely to further influence MYR movements in the coming weeks.
Investors should closely monitor these developments as the interplay of tariffs, geopolitical tensions, and oil price fluctuations will be pivotal in shaping the MYR's trajectory in the near term.
