Recent developments impacting the EUR to MYR exchange rate indicate a mixed outlook for both currencies. Analysts note that the euro has faced downward pressure due to fading hopes for peace in Ukraine and weaker-than-expected inflation data from Germany. As a result, investor expectations regarding European Central Bank (ECB) policy have shifted, with indications that rates may be cut by late 2025 from the current 4.0% to around 3.5%. This dovish shift in monetary policy may further undermine the euro's strength relative to other currencies, including the Malaysian Ringgit.
The Malaysian Ringgit, on the other hand, has recently appreciated to a 13-month high, buoyed by positive economic outlooks and stable interest rates. Reports highlight that Malaysia's GDP growth of 5.2% in Q3 2025 has fueled confidence in the MYR, while successful trade agreements from the recent ASEAN Summit appear to enhance the Ringgit's prospects further. Bank Negara Malaysia's maintenance of the Overnight Policy Rate at 3% reflects a commitment to stability, likely supporting the currency's upward trajectory.
Recent price data shows the EUR to MYR exchange rate at 4.7944, which is 1.9% below its three-month average of 4.8848. This demonstrates a relatively stable trading range, but the euro's depreciation may continue if geopolitical uncertainty persists. Meanwhile, the recent volatility in oil prices, trading at $63.30 and 2.5% below its three-month average, could also impact the euro, as oil prices significantly affect economic sentiment and currency values in the Eurozone.
In summary, while the Malaysian Ringgit gains support from positive domestic developments and international agreements, the euro may struggle to regain momentum amid uncertain geopolitical conditions and adjusting ECB policies. Investors should closely monitor these evolving factors as they navigate international transactions.
