The MYR to CNY exchange rate is currently biased towards a stable outlook.
Key drivers include the narrowing interest rate differential between Malaysia and the U.S., especially as anticipated Fed rate cuts may boost the MYR. Additionally, Malaysia's improved fiscal position and strong economic growth are expected to support the currency. Meanwhile, the Chinese yuan is likely to strengthen, influenced by expected policy changes and overarching trade dynamics, while reducing reliance on the U.S. dollar is a significant macro factor bolstering the MYR.
Expect the MYR to CNY trading range to remain stable in the near term, reflecting its recent consistent movements. Upside risks could stem from stronger-than-expected Malaysian GDP growth or significant foreign investments. Conversely, a resurgence in oil prices may negatively impact the MYR, particularly given Malaysia's reliance on oil revenues.
Current MYR to CNY levels sit just above the three-month average, with limited volatility recently noted in both currencies.