The Malaysian Ringgit (MYR) and the Hong Kong Dollar (HKD) have recently exhibited dynamic trends influenced by a combination of economic indicators, monetary policy decisions, and external factors.
The MYR has appreciated significantly, reaching a 13-month high around 1.8840 MYR per HKD. Analysts attribute this strength to a positive economic outlook, supported by a stable Overnight Policy Rate maintained at 3% by Bank Negara Malaysia. The country’s resilient GDP growth of 5.2% in Q3 2025 and beneficial trade agreements from the recent ASEAN Summit have further bolstered investor confidence in the MYR.
Conversely, the HKD's position has weakened following two consecutive interest rate cuts by the Hong Kong Monetary Authority (HKMA) in September and October, bringing the base rate down to 4.25%. This trend illustrates the HKD's susceptibility to external monetary policy adjustments, particularly in alignment with the U.S. Federal Reserve's actions. In addition, HKMA's interventions in the currency market to support the HKD indicate ongoing challenges in maintaining its peg amid fluctuating market conditions.
Recent data shows that the MYR to HKD conversion is currently 1.6% above its three-month average, suggesting a bullish momentum for the MYR. This trend aligns with ongoing concerns regarding oil price movements, which have seen the Brent Crude OIL/USD rate at 62.38, indicating volatility and a 4.1% drop from the three-month average. Significant oil price fluctuations could influence the MYR, as Malaysia is a notable oil exporter.
In summary, the MYR exhibits a strong upward trend fueled by economic resilience and favorable trade conditions, while the HKD faces downward pressure from monetary policy adjustments and market interventions. Future developments in both economies and global oil prices will be crucial in shaping the MYR to HKD exchange rate.
