Forecasts for GBP to MYR
The exchange rate forecast for GBP to MYR is currently under significant pressure, given the recent geopolitical developments and trade tensions. Analysts note that the British pound (GBP) is trading near 60-day lows at approximately 5.6662 MYR, just below its three-month average. This reflects a general trend of low volatility within a 7.4% range from 5.4591 to 5.8653. The currency has been affected by local uncertainties, including ongoing political developments as local elections unfold in the UK, which have contributed to a subdued trading atmosphere for the GBP.
In recent announcements, U.S. President Donald Trump has imposed a 10% tariff on imports from the UK, adding to existing trade war tensions and potentially exacerbating volatility in the GBP as the market adjusts to these new trade dynamics. Political instability in the UK, particularly regarding Labour's electoral prospects, further adds to the uncertainty surrounding the pound. These factors may prevent the GBP from making any substantial gains in the near term.
On the Malaysian side, the MYR is facing its own challenges, as it is impacted by a severe 24% tariff imposed by the U.S., along with broader concerns over the weakening outlook for emerging Asian currencies in light of escalating global trade tensions. Notably, regional currencies have recently come under pressure, with falls in the Thai baht and South Korean won. This creates a difficult environment for the MYR, particularly as fears of a global trade war affect market sentiment.
Moreover, the Malaysian ringgit is sensitive to fluctuations in oil prices, which have recently been volatile. Current oil prices are at 90-day lows near 61.29 USD, significantly below the three-month average of 70.61 USD. This decline represents a 13.2% drop, further complicating the MYR's position as oil remains a crucial export for Malaysia.
Overall, forecasts indicate that the GBP to MYR exchange rate may continue to be influenced by these multifaceted economic and geopolitical factors. Analysts suggest that as long as uncertainties persist on both the domestic political front in the UK and with U.S.-China trade relations, the GBP is likely to experience limited upward movement against the MYR. Investors and businesses should monitor these developments closely to better navigate potential currency transaction strategies in the coming weeks.
