The exchange rate between the Malaysian Ringgit (MYR) and the Indian Rupee (INR) has recently shown significant developments, influenced by both regional economic indicators and international trade dynamics. Currently, the MYR to INR rate is at 20.99, which marks a 90-day high and is 2.2% above its three-month average of 20.53, indicating strength in the MYR against the INR.
Recent updates reveal that the Bank Negara Malaysia (BNM) maintained the overnight policy rate at 2.75%, following a rate cut in July 2025. Analysts predict a potential appreciation of the MYR towards RM4.10 to RM4.15 against the U.S. dollar by December 2025, driven by anticipated fiscal reforms and a resilient economic outlook despite external pressures like U.S. tariffs on Malaysian exports.
In contrast, the INR has been under pressure, recently reaching a record low of 88.36 per U.S. dollar due to heightened concerns over new U.S. tariffs on Indian goods and substantial foreign portfolio outflows. The Reserve Bank of India (RBI) has intervened by selling dollars to stabilize the rupee, indicating a tactical response to external economic challenges. A recent Reuters poll suggests that the INR might stabilize around 88.00 in the coming months, reflecting a cautious outlook amidst ongoing fiscal instability.
The MYR performance is also influenced by oil price movements. The current oil price of 66.99 USD per barrel is 2.9% below its three-month average, highlighting volatility in crude markets that could impact Malaysian export revenues, thus indirectly influencing the MYR. Given the precarious situation for the INR, businesses and individuals with exposure to these currencies should consider hedging strategies to mitigate risks associated with currency fluctuations, as trends reveal a dynamic interplay between Malaysian national policies and global economic conditions.
