The MYR to GBP exchange rate has seen increased volatility recently, influenced largely by external trade dynamics and domestic economic conditions in both Malaysia and the UK. At the current rate of 0.1724, the Malaysian Ringgit (MYR) remains close to its three-month average of 0.1739, reflecting a relatively stable trading range of 4.9% between 0.1705 and 0.1788.
Recent developments impacting the MYR include the U.S. imposition of a 24% tariff on imports from Malaysia, a measure that could lead to a deterioration in regional economic sentiment. Analysts suggest that this tariff, alongside a broader trade conflict initiated by President Trump, could weigh heavily on Malaysia's economic growth outlook, potentially weakening the MYR further against major currencies.
Moreover, the performance of Asian currencies, including the MYR, has been adversely affected by rising fears of a global trade war, which have contributed to speculative selling. The volatility in crude oil prices, especially with oil trading at $67.77—1.2% above its three-month average—may also impact the MYR since Malaysia is a notable exporter of palm oil and petroleum. Fluctuations in oil prices can significantly affect revenue for the Malaysian economy and, by extension, the MYR exchange rate.
For the GBP, the currency faces uncertainty as well, primarily stemming from recent mixed comments made by Bank of England (BoE) Governor Andrew Bailey regarding the UK labor market and inflation pressures. The GBP has been trading erratically as economic data remains sparse, leaving it with no clear directional bias. In the past weeks, the impact of new tariff measures on UK goods has added to the economic pressures already being felt post-Brexit, making the GBP sensitive to both domestic economic indicators and political developments.
Looking ahead, forecasters point out that the MYR is likely to remain under pressure due to trade tensions and potential economic slowdowns, while GBP will be influenced by the BoE’s monetary policy and market sentiment based on the UK’s economic recovery trajectory. As such, fluctuations in both currencies can offer opportunities and risks for individuals and businesses engaged in international transactions. Monitoring these developments will be essential for making informed decisions regarding currency exchange rates.