The exchange rate forecast for the Malaysian Ringgit (MYR) against the British Pound (GBP) reflects several influencing factors from both economies. Recently, the GBP gained some strength following the UK's better-than-expected GDP figures, which saw economic expansion of 0.3% in Q2, surpassing the 0.1% prediction. However, this growth trail from Q1's 0.7% has limited Sterling's upward momentum.
Analysts highlight that the MYR is subject to pressures such as the recent 24% tariff imposed by the US on Malaysian imports and the anticipated interest rate cuts by the Federal Reserve, which could favor the MYR by potentially weakening the US dollar. Additionally, oil prices, critical for Malaysia's economy, have seen volatility; currently, they are trading at 65.85 USD per barrel, about 3.8% below the 3-month average. These oil price fluctuations could impact the MYR’s stability and performance.
On the GBP side, currency experts note that the Bank of England's recent rate cut from 4.25% to 4% is indicative of a cautious approach amidst mixed economic signals. With key economic data, including job market indicators, expected soon, the potential for further easing remains a significant concern for GBP holders. Rising inflation, currently projected to reach 4% in September, and weakening labor market conditions may also impact the GBP's future performance.
The MYR to GBP exchange rate, currently at 0.1751, is slightly above its 3-month average and has remained stable, trading within a 3.5% range from 0.1722 to 0.1782. As both currencies navigate through domestic and global economic challenges, analysts continue to monitor these developments closely, indicating potential volatility that could affect exchange rates in the near term.
In summary, the MYR and GBP are influenced by domestic economic policies, external trade dynamics, and fluctuating commodity prices, creating a complex environment for currency exchange.
