The EUR to MYR exchange rate has been experiencing downward pressure, currently sitting near 4.7940, which marks a 2.4% drop from its 3-month average of 4.9121. Analysts highlight a stable trading range for the euro, fluctuating between 4.7940 and 4.9903, indicating a period of relative stability amid recent fluctuations in economic data and geopolitical developments.
In the Eurozone, the euro's relatively firm performance was bolstered by a negative correlation with a weakening US dollar, despite disappointing German economic sentiment. Market expectations are leaning towards the European Central Bank (ECB) maintaining a dovish monetary policy, with forecasts suggesting a potential reduction in interest rates to 3.5% by late 2025. This shift may close the interest rate differential with the US, affecting the euro's strength against other currencies, including the MYR. Furthermore, the ongoing geopolitical tensions, particularly stemming from the war in Ukraine, continue to create uncertainty that impacts the euro's value.
Conversely, the Malaysian Ringgit (MYR) has shown resilience, reaching a 13-month high due to positive economic outlooks, stable monetary policy, and robust GDP growth of 5.2% in Q3 2025. The approval of numerous trade agreements during the recent ASEAN Summit has further bolstered investor confidence in the MYR, as it enhances export prospects.
While oil prices, currently trading near 65.16 USD per barrel and just slightly below their 3-month average, can significantly influence the value of the MYR, they also indirectly affect the euro through macroeconomic links. As Malaysia is both an oil producer and consumer, fluctuations in oil prices may continue to impact the stability of the MYR as it seeks to balance trade influences.
Overall, with the ongoing adjustments in both economic projections and central bank policies, the EUR/MYR exchange rate is likely to remain under pressure, influenced by contrasting monetary stances, economic growth rates, and external geopolitical factors that could steer investor sentiment in the coming months.
