Forecasts for MYR to CNY
The exchange rate forecast for the Malaysian Ringgit (MYR) against the Chinese Yuan (CNY) indicates a bearish outlook due to ongoing geopolitical tensions and economic pressures from recent tariff announcements. The MYR is currently at 1.6797 CNY, a level that marks a 7-day low and is significantly above its 3-month average of 1.6502 CNY. Analysts note that the MYR has traded within a range of 1.6264 to 1.7349 CNY, highlighting the currency's recent volatility.
The recent U.S. tariffs imposed on Malaysia, which have reached 24%, coupled with a broader trade war approach towards China, has diminished regional optimism and pressured emerging Asian currencies including the MYR. This trend is echoed by economists who predict that continuous tariff threats from the U.S. will likely curb economic growth and trade activities, ultimately influencing the MYR's strength. As Malaysia seeks regional support against U.S. tariffs, its currency may remain under strain.
On the other hand, the Chinese Yuan is also facing challenges, particularly with its recent depreciation as it slid past the key 7.3 per dollar mark. The economic slowdown in China, worsened by recent tariffs, has led to increased pressure on the Yuan. Analysts suggest that the People's Bank of China (PBOC) may abandon its stable currency policy to mitigate economic repercussions, while market sentiment remains cautious due to low growth indicators in China.
Significantly, the price of Brent Crude oil has reached 63.91 USD, which, despite being at a 7-day high, remains 8.1% below its 3-month average. Given Malaysia's economy's dependence on oil exports, fluctuations in oil prices could further impact the MYR's performance. Economists highlight that sustained high oil prices may bolster the MYR in the medium to long term, while ongoing volatility could contribute to short-term challenges in maintaining a stable exchange rate against the CNY.
In conclusion, the MYR's current position against the CNY reflects a complex interplay of local economic conditions, regional tariff impacts, and the macroeconomic environment dictated by oil prices. Continuous monitoring of these factors will be essential for individuals and businesses engaging in international transactions.
