Forecasts for AED to MYR
Recent developments in the currency markets indicate a challenging outlook for the Malaysian Ringgit (MYR) against the UAE Dirham (AED). Following the announcement of a significant 24% tariff on Malaysian imports by U.S. President Donald Trump, the MYR has faced increased pressure. This tariff, which is part of the broader trade conflict, has contributed to a deteriorating sentiment toward emerging Asian currencies, as evidenced by a general downturn in the region. Analysts observe that Malaysia's attempt to coordinate a response with Southeast Asian nations, combined with its refusal to retaliate with tariffs of its own, reflects a strategic approach aimed at mitigating potential economic fallout.
The AED to MYR exchange rate currently stands at 1.1693, which is approximately 2.3% lower than its three-month average of 1.1972. The pair has maintained a relatively stable trading range between 1.1448 and 1.2227. However, with the MYR subjected to external shocks such as the tariff imposition and a volatile oil market, the currency's stability may be tested further. Oil prices, which have also dipped, trading at $65.41—5.0% below their three-month average—add complexity to the MYR's outlook given Malaysia's role as a key oil exporter. The volatility of oil prices, observed in a range from $60.14 to $76.54, could further influence the MYR's performance.
Market experts highlight that the combination of external tariffs, fluctuations in oil prices, and regional currency pressures—exemplified by declines in currencies like the Thai baht and South Korean won—suggest a cautious sentiment toward the MYR. As the situation evolves, businesses and individuals conducting international transactions may want to stay abreast of these developments, as they could impact exchange rates significantly in the near term.
