The market bias for the HKD to MYR exchange rate is currently bearish.
Key drivers influencing this trend include the interest rate differential, as the Federal Reserve is expected to cut rates, potentially supporting the MYR. Additionally, Malaysia's positive economic outlook, marked by solid GDP growth and fiscal reforms, bodes well for the MYR’s strength. The outlook for oil prices also plays a role; recent movements have shown oil trading at 30-day highs, which could support emerging markets like Malaysia due to economic ties.
In the near term, the expected trading range for the HKD to MYR is likely to stay stable but under pressure. The current price of 0.5226 remains around 1.7% below its 3-month average of 0.5318, indicating potential for further declines.
Upside risks could arise from improved investor sentiment or stronger than expected oil prices. Conversely, a sudden shift in global economic conditions or adverse domestic factors in Malaysia could negatively impact the MYR.