Forecasts for MYR to JPY
The MYR to JPY exchange rate is currently trading at 33.84, which is 1.3% above its three-month average of 33.42. The rate has exhibited relative stability, fluctuating within a range of 7.4% from 32.17 to 34.55. However, recent developments in the global trade landscape, particularly the U.S. tariffs on Malaysia and Japan, are creating headwinds for both currencies.
The U.S. has imposed a 24% tariff on imports from Malaysia, as part of a broader trade conflict. Analysts have noted that Malaysia is attempting to engage constructively while coordinating responses among Southeast Asian peers. This situation is contributing to a negative outlook for emerging Asian currencies, including the Malaysian ringgit, as concerns about a global trade war intensify. Similarly, Japan is facing a reciprocal tariff impact, which has implications for its export-driven economy and could pressure the yen.
The Japanese yen historically acts as a safe-haven asset, generally appreciating during periods of economic uncertainty. Recent trends show a strengthening of the yen amid rising trade tensions, as investors flock to safe-haven currencies. However, with MUFG Research forecasting a decline in the USD/JPY exchange rate to around 148.00 by late 2025, there is a chance that the yen may weaken further depending on the evolving confidence in global markets.
Moreover, fluctuations in oil prices are significant, considering Japan's reliance on energy imports. Currently, oil prices are at 14-day lows near 63.90, about 5.1% below their three-month average of 67.32, having experienced considerable volatility. As oil prices are tied to global economic conditions, any further drops could adversely affect the yen due to reduced demand for Japanese exports when energy costs are high.
Looking ahead, the outlook for the MYR to JPY exchange rate will depend heavily on developments in trade relations and monetary policy adjustments from central banks. Market analysts will be closely watching the impact of U.S. trade policies and oil price fluctuations, as well as any shifts in Japan's monetary policy that could influence the yen's strength in the face of ongoing geopolitical uncertainties.
