Forecasts for MYR to GBP
The MYR to GBP exchange rate currently sits at 0.1736, slightly below its three-month average, and has demonstrated relatively stable trading in a 4.9% range from 0.1705 to 0.1788 recently. Analysts note that the Malaysian Ringgit (MYR) faces challenges due to the recently announced 24% tariff by the US on Malaysian goods as part of the escalating trade tensions initiated by former President Donald Trump. This development has contributed to a negative outlook for emerging Asian currencies, with overall market sentiment increasingly cautious amid fears of a global trade war. As Malay's Prime Minister Anwar Ibrahim indicated, the country is attempting to coordinate a regional response without immediate retaliation, but the tariffs have certainly heightened pressure on the MYR.
Meanwhile, the British Pound (GBP) continues to be influenced by economic data as well. A recent contraction of 0.3% in the UK's GDP for April led to initial declines in the GBP. Despite this setback, Sterling managed to recover some losses later in the session, buoyed by weaker local peers. However, pundits suggest that with limited economic data anticipated in the coming days, the pound may trade erratically without a definitive direction.
The MYR is also closely tied to oil prices, which have seen a notable increase recently, trading at $74.23—10.9% above its three-month average of $66.94 and experiencing a significant volatility range of 24.7%. As Malaysia is a net exporter of oil, analysts expect that rising oil prices could lend some support to the MYR in the long term, although its immediate reactions to economic and political conditions continue to pose risks.
Overall, the future trajectory of the MYR against the GBP appears uncertain, heavily influenced by international trade policies, domestic economic indicators, and geopolitical developments. Currency experts emphasize monitoring both the tariffs' impact on the MYR as well as the ongoing political and economic evolution in the UK, which remains crucial for predicting movements in GBP. This combination of factors will likely dictate the exchange rate dynamics in the near term.