Forecasts for MYR to EUR
The MYR to EUR exchange rate has recently shown volatility, reaching 30-day highs near 0.2073, which is just 0.8% below its 3-month average of 0.2088. Analysts note that the currency pair has traded within a notable 10.4% range, from 0.1988 to 0.2194. This fluctuating movement reflects the increasing tension in global trade, particularly due to U.S. tariffs imposed by President Donald Trump on imports from Malaysia and the EU, contributing to uncertainty in emerging markets like Malaysia.
The recent announcement of a 24% tariff on Malaysian goods has prompted concerns over the outlook for the MYR, especially as regional peers experience declines, with currencies like the Thai baht and South Korean won sliding around 2%. Economists suggest that these tariffs, coupled with market fears of a broader trade war, are likely to curb risk appetite and weaken the MYR further in the coming weeks.
On the euro side, while upbeat GDP figures were released, they were not enough to sustain the euro’s strength against the backdrop of rising U.S. dollar pressure. As the dollar appreciates, the euro has softened, particularly amidst diminishing inflation signals in the Eurozone. Experts are closely monitoring upcoming CPI figures, as a cooling inflation climate could lead to a further slump in the euro's value, while persistent price pressures might provide a modicum of support.
Broader geopolitical factors continue to influence the euro as well. The ongoing war in Ukraine and its impact on energy supplies have introduced additional volatility, with the euro becoming increasingly sensitive to shifts in global sentiment. With Brent Crude OIL/USD trading at 90-day lows near 61.29, approximately 13.2% below its 3-month average, fluctuations in oil prices may also add pressure to the euro given its ties to energy costs and economic health indicators.
In summary, analysts forecast that both the MYR and EUR are facing significant headwinds from trade and geopolitical developments. As the markets adjust to ongoing uncertainties, businesses and individuals engaging in international transactions may want to closely monitor these developments to optimize their currency exchanges. The interplay of tariffs, inflation pressures, and external economic factors will be crucial in shaping the near-term trajectory of the MYR to EUR exchange rate.
