The Malaysian Ringgit (MYR) and Hong Kong Dollar (HKD) exchange rate has recently exhibited stability, with the MYR trading at approximately 1.8489 HKD, near its three-month average and within a limited range of 1.8350 to 1.8657. Analysts have pointed out that recent monetary policy changes by both the Bank Negara Malaysia (BNM) and the Hong Kong Monetary Authority (HKMA) are critical factors influencing the exchange rate between these currencies.
On July 9, 2025, BNM cut its Overnight Policy Rate by 25 basis points to 2.75%, marking the first rate reduction in five years. This move was intended to stimulate economic growth amid ongoing global trade tensions and challenges from imposed U.S. tariffs on Malaysian exports. Economists have noted that despite these pressures, the MYR might strengthen further against the U.S. dollar, driven by resilient economic fundamentals and a potentially softer stance from the U.S. Federal Reserve.
Conversely, the HKMA followed suit on September 18, 2025, reducing its base interest rate by 25 basis points to 4.50% in alignment with the Federal Reserve's policies. This was the first reduction since December 2024, reflecting a potential shift in the economic landscape that may also influence the HKD's performance. The HKMA has also engaged in market interventions to maintain the HKD's peg to the U.S. dollar, further emphasizing its commitment to currency stability despite external pressures.
Recent oil price movements may also play a role in affecting the MYR, as Malaysia, being an oil-exporting nation, is sensitive to fluctuations in oil prices. Currently, oil is trading at $64.53, which is notably 5.0% below its three-month average. This volatility could have knock-on effects on the MYR, given its correlation with Malaysia's export income.
Overall, the MYR to HKD exchange rate is expected to remain influenced by these monetary policies and external economic factors, including oil prices and global economic conditions. Market experts recommend closely monitoring these developments, as they could signal opportunities or risks for international transactions involving these currencies.
