Forecasts for MYR to CNY
Recent developments in trade policy have significantly impacted the MYR to CNY exchange rate forecasts. Analysts note that the U.S. has levied a 24% tariff on imports from Malaysia, which is part of a broader trade war initiated by President Trump. This has raised concerns regarding Malaysia's economic stability, as the country refrains from retaliating but is actively pursuing a coordinated regional response. The negative sentiment surrounding emerging Asian currencies is palpable, as the outlook weakens in response to these developments.
In contrast, the Chinese yuan is experiencing downward pressure due to the U.S. imposing a substantial 34% tariff on Chinese goods. Beijing's swift retaliatory measures have further escalated tensions, prompting discussions among investors about the potential abandonment of Beijing's stable currency policy. The yuan has recently weakened, breaching the significant level of 7.3 per dollar, indicating challenges in the Chinese economy's recovery from the pandemic and suggesting a slowdown in growth momentum.
Market observers point out that the MYR to CNY exchange rate is trading at 14-day highs near 1.6971, which is a 2.4% increase over its three-month average of 1.6566. This recent appreciation comes amid fluctuations, with the rate maintaining a stable range from 1.6264 to 1.7349. Meanwhile, the Malaysian ringgit is likely to remain influenced by oil price movements, given Malaysia's status as a key oil producer. Currently, oil prices are at $64.78, which is 4.8% below the three-month average of $68.05 and has shown volatility, trading in a range from $60.14 to $75.02.
Experts indicate that the ongoing economic uncertainties, both from U.S.-China trade tensions and domestic challenges in both Malaysia and China, will continue to exert significant pressure on the MYR-CNY exchange rate. Continued monitoring of tariff developments and regional responses will be essential for forecasting future currency movements.
