The recent exchange rate forecasts for the Malaysian Ringgit (MYR) against the Japanese Yen (JPY) indicate a complex interplay of factors influencing the currency pair. As of early September 2025, the MYR is trading at 34.89, which is only 0.8% above its three-month average of 34.63, reflecting a relatively stable market with a range of 4.2% between 33.94 and 35.35.
The Malaysian Ringgit's performance has been affected by Bank Negara Malaysia's (BNM) recent interest rate cut, which reduced the Overnight Policy Rate (OPR) to 2.75%. Analysts expect BNM to maintain this rate, indicating that the MYR may be under some downward pressure due to soft inflation and the need to stimulate economic growth. Furthermore, the implementation of tariffs by the U.S. on Malaysian exports could impact investor sentiment, particularly amidst ongoing geopolitical uncertainties.
Conversely, the Japanese Yen is experiencing upward momentum, influenced significantly by the Bank of Japan's (BOJ) commitment to continue interest rate hikes in response to inflationary pressures. This suggests a potential strengthening of the JPY relative to the MYR if these trends continue. Additionally, recent political uncertainties in Japan have led to a preference for the yen as a safe haven, further bolstering its position against other currencies.
Oil prices are also a factor to consider, with current levels near 65.50 USD indicating volatility and a decline from the three-month average of 69.04. Since Malaysia is a net oil exporting country, lower oil prices could negatively impact the MYR, while sustained low levels could help support demand for the JPY due to its status in global trade.
Overall, the outlook for the MYR to JPY exchange rate is characterized by cautious sentiment. Analysts emphasize the importance of monitoring both macroeconomic developments in Malaysia and interest rate strategies from the BOJ. Continued geopolitical tensions and trade policies are likely to play a significant role in shaping the direction of this currency pair moving forward.
