The Malaysian Ringgit (MYR) has shown considerable strength against the Indian Rupee (INR) recently, as the exchange rate stands at 21.46, reflecting a 2.3% increase above its three-month average of 20.98. Analysts attribute this appreciation to several positive developments in the Malaysian economy, including a robust GDP growth rate of 5.2% in Q3 2025 and a stable monetary policy maintained by Bank Negara Malaysia, which has kept the Overnight Policy Rate at 3%. These factors have fostered increased investor confidence and supported the MYR's upward trajectory.
Additionally, trade agreements secured at the recent ASEAN Summit, particularly with the United States, have enhanced Malaysia's export prospects, further bolstering the Ringgit's value. In contrast, the Indian Rupee has faced multiple challenges. After reaching a record low against the US dollar in September 2025, the INR has been under pressure due to a combination of weak manufacturing exports and a widening policy rate differential with the US, which has heightened concerns over foreign investment inflows.
Market experts point to the Reserve Bank of India's (RBI) recent measures to stabilize the rupee, including a significant expansion of its dollar forward positions. However, continued importer demand for dollars and concerns regarding US tariffs have limited the effectiveness of these interventions. As the INR struggles to recover, the MYR enjoys a favorable outlook, supported by stable economic indicators and sound fiscal policies.
The fluctuations in oil prices also play a role in shaping these currencies. Currently, oil is trading at $64.29, slightly below its three-month average, which could impact Malaysia’s oil-dependent economy moving forward. As oil prices stabilize, the MYR could continue to benefit, given its strong correlation with oil exports.
In summary, the analysts indicate that the MYR may maintain its strength against the INR in the near future, provided that Malaysia continues to deliver on its economic growth and stability, while the INR faces headwinds that complicate recovery efforts.
