The current market bias for the MYR to SGD exchange rate is bullish. Key drivers include the interest rate differential as the U.S. Federal Reserve is expected to cut rates, which may enhance MYR’s position against the SGD. Malaysia's positive economic outlook, highlighted by strong GDP growth and fiscal reforms, further supports the MYR's potential to strengthen. Additionally, global de-dollarization trends could attract more investments into Malaysia, benefiting the MYR.
The near-term trading range is likely to remain stable, reflecting a minor increase above the recent average price. The MYR has traded within a tight range, suggesting limited volatility.
An upside risk could arise from surging oil prices, as a 30-day high of oil near $63 influences Malaysian earnings from exports. Conversely, a downside risk is posed by any unexpected tightening of monetary policy by the Monetary Authority of Singapore, which might bolster the SGD against the MYR.