The EUR to MYR exchange rate is currently facing downward pressure, recently trading at 90-day lows near 4.7789, which is about 2.4% below its three-month average of 4.8985. Several developments in both the Eurozone and Malaysia have contributed to this trend.
In the Eurozone, weak consumer confidence, reflected by the consumer confidence index holding at -14.2 in November, has negatively impacted the euro’s value. Analysts suggest that further developments, such as upcoming PMIs, may provide temporary support for the euro if they indicate resilience in the private sector. However, the European Central Bank's (ECB) shift towards a dovish monetary policy, coupled with expectations of future interest rate cuts from 4.0% to 3.5% by late 2025, raises concerns regarding the euro's strength. Furthermore, geopolitical tensions and the ongoing war in Ukraine continue to create volatility for the euro due to inflation pressures and economic uncertainty.
In contrast, the Malaysian Ringgit has recently appreciated to a 13-month high. Positive economic projections, stable monetary policy from Bank Negara Malaysia holding the Overnight Policy Rate at 3%, and increased export prospects following trade agreements from the ASEAN Summit have bolstered the MYR's value. Analysts point to Malaysia’s resilient 5.2% GDP growth in Q3 2025, which has further fueled confidence in the Ringgit.
Given the current interplay between these factors, the MYR appears to be gaining an advantage over the euro. This trend is further influenced by fluctuations in oil prices, with crude oil currently trading at $62.56, which is 4.4% below its three-month average of $65.44. As oil prices play a significant role in influencing both currencies, continued volatility may create additional challenges for the euro.
Looking ahead, market participants will need to closely monitor these economic indicators and geopolitical developments to navigate potential fluctuations in the EUR/MYR exchange rate effectively. As the economic landscape evolves, understanding these dynamics will be crucial for making informed international transactions.
