The CAD to MYR exchange rate remains under pressure amid a complex backdrop of geopolitical tensions and fluctuating commodity prices. Recent analyst forecasts indicate that despite rising oil prices, which typically support the Canadian dollar (CAD) due to Canada being a major oil exporter, the CAD has struggled to gain momentum against its international peers. Currently, CAD is trading near 3.1038 MYR, marking a 7-day low, just below its 3-month average, and within a stable 5.0% range since late August.
The primary factor influencing the CAD is its linkage to oil prices, which recently reached 90-day highs at approximately 78.85 USD, significantly exceeding the 3-month average of 67.33 USD by 17.1%. Analysts stressing the robust correlation between oil fluctuations and CAD's value are watching closely for any signs that might spur a rebound. However, in the short term, political instability following the recent leadership change in Canada and intensifying U.S. trade tensions—exemplified by substantial tariffs—contribute to a cautious outlook. Market responses to these uncertainties have suggested limited upside for the CAD.
On the Malaysian ringgit (MYR) side, the impact of U.S. tariffs—especially the recently imposed 24% tariff on Malaysian imports—has led to a deterioration of sentiment surrounding the MYR. The Malaysian government is currently navigating these challenges without direct retaliation, focusing on regional engagement to address concerns raised by the U.S. stance. As a result, the MYR faces headwinds associated with slowed regional currencies, further hampered by fear stemming from a potential global trade war.
The dynamics between the CAD and MYR reflect not only the domestic issues impacting each currency but also broader trade relationships and market sentiment. As both markets contend with these external pressures, traders will benefit from monitoring developments closely, especially the latest economic indicators from Canada and ongoing geopolitical negotiations involving Malaysia.