The market bias for the MYR to INR exchange rate is currently bullish.
Key drivers include the interest rate differential, as Federal Reserve interest rate cuts could strengthen the MYR compared to the INR. A positive outlook for Malaysia's economy, driven by strong GDP growth and fiscal reforms, supports this bullish view. Additionally, efforts to reduce reliance on the US dollar could further enhance the MYR's appeal.
In the near term, the MYR is expected to trade within a stable range, slightly above its recent average.
Potential upside risks may arise from improved economic data out of Malaysia or further global de-dollarization trends that favor the MYR. Conversely, a significant depreciation in the INR due to ongoing foreign outflows or heightened global market volatility could exert downward pressure on the MYR against the INR.