Recent forecasts suggest a mixed outlook for the Malaysian Ringgit (MYR) against the Indian Rupee (INR), influenced by both domestic policies and global economic conditions. Following a notable 25 basis point interest rate cut by Bank Negara Malaysia (BNM) in July 2025, aimed at stimulating economic activity amid external pressures, economic analysts have expressed cautious optimism. They anticipate that the MYR may continue to strengthen against the U.S. dollar due to expected rate cuts from the U.S. Federal Reserve, which could favor the ringgit's performance. Currently, the MYR is trading at approximately 21.09 INR, reflecting a 1.9% increase above its three-month average of 20.7, demonstrating relatively stable fluctuations within a 4.8% range.
On the other hand, the Indian Rupee (INR) has faced significant challenges, falling for five consecutive months as of September 2025, and reaching its lowest point against the U.S. dollar at 88.8. This depreciation is largely attributed to escalating trade tensions, particularly with the U.S., which have impacted Indian exports and increased costs. The Reserve Bank of India (RBI) is now considering strategies to enhance the rupee’s global standing, such as promoting rupee-denominated loans. However, there are expectations that the RBI may opt for a rate cut to support the faltering economy, despite most analysts projecting that rates will remain unchanged.
The impact of global oil prices on Malaysia’s economy and currency can also not be overlooked. Currently, oil prices are around $64.53 per barrel, which sits 5.0% below their three-month average. The volatility in oil prices, within a 14.3% range, may affect Malaysia’s external revenues and subsequently influence the MYR.
In summary, while the MYR shows signs of resilience and potential strengthening against the INR due to underlying economic fundamentals and monetary policy adjustments, the INR’s ongoing depreciation poses challenges amid trade uncertainties and geopolitical factors. Stakeholders should monitor these dynamics closely to make informed decisions regarding currency exchanges and international transactions.
