Forecasts for EUR to MYR
The EUR to MYR exchange rate has come under pressure recently, influenced by a combination of geopolitical tensions, trade tariffs, and monetary policy outlooks. Currently priced at 4.8052, the euro stands just below its three-month average, having experienced significant volatility over recent weeks, with a trading range of 4.6111 to 5.0307. Analysts indicate that the euro's outlook has dimmed due to dovish comments from European Central Bank (ECB) policymaker Martins Kazaks, who suggested the possibility of further interest rate cuts. This dovish stance may weaken the euro further as it diminishes expectations of tighter monetary policy.
On the Malaysian side, the ringgit's performance has been negatively impacted by the imposition of a 24% tariff on Malaysian goods by the US. This development aligns with broader concerns regarding a potential global trade war, influencing risk sentiment and causing regional currencies to falter. Economists note that the Malaysian currency, like its peers in Southeast Asia, has recently seen declines, reflecting a lack of investor confidence amidst rising global trade tensions.
Oil prices, which play a significant role in determining the value of the MYR, are also experiencing fluctuations. The Brent Crude OIL to USD rate is currently at 65.52, approximately 4.5% below its three-month average, amidst heightened volatility with a range from 60.14 to 76.54. Since Malaysia is a net exporter of oil, changes in oil prices directly affect the MYR. As long as oil remains under pressure, the MYR is likely to struggle, particularly against the EUR.
Looking ahead, analysts forecast that the EUR to MYR exchange rate will continue to be affected by geopolitical developments, particularly those surrounding trade policies and the ongoing war in Ukraine, which have immense ramifications for the Eurozone economy. The outcome of upcoming trade talks and any shifts in ECB monetary policy could also significantly influence this exchange rate. For those involved in international transactions, understanding these dynamics will be crucial for navigating currency fluctuations and optimizing costs.
