The Malaysian Ringgit (MYR) has recently seen a notable appreciation against the Indian Rupee (INR), reaching a 90-day high of approximately 21.60. This marks a significant increase of 2.7% above its three-month average of 21.03. Analysts attribute much of this upward movement to positive economic indicators in Malaysia, including expected stability in interest rates and ongoing robust GDP growth, which was reported at 5.2% for Q3 2025. Additionally, trade agreements secured during the recent ASEAN Summit have enhanced Malaysia's export prospects, further supporting the MYR.
Conversely, the Indian Rupee has faced considerable challenges. Recent market data revealed that the INR reached an all-time low against the US dollar, attributed to various factors including increased H-1B visa fees and declining foreign investment. The Reserve Bank of India's (RBI) interventions, such as expanding its short dollar forward positions, indicate ongoing attempts to mitigate the rupee's decline, yet pressures remain from strong importer demand for dollars and a concerning policy rate differential relative to the US.
The significant divergence in currency performance is also impacted by external factors such as oil prices, which have recently been trading at $62.56, around 4.4% below their three-month average. Given Malaysia's positioning as a major oil exporter, fluctuations in oil prices can directly influence the MYR's strength.
Overall, the combination of supportive economic indicators for Malaysia and mounting pressures on the Indian economy suggests that the MYR may continue to perform well against the INR in the near term, as market analysts maintain a cautious outlook on the rupee's recovery.
