Forecasts for MYR to THB
Recent analyst forecasts for the MYR to THB exchange rate suggest a cautious outlook as the region grapples with the effects of escalating trade tensions initiated by U.S. tariffs. Following the announcement of a 24% tariff on imports from Malaysia by former President Trump, the Malaysian Ringgit (MYR) has encountered significant headwinds. Analysts note that Malaysia's decision not to retaliate and instead seek engagement may help stabilize the currency in the long run, but immediate impacts have been negative.
Both the MYR and the Thai Baht (THB) have felt the pressure from the trade war, as fears of an escalating global trade conflict have led to a drop in regional currencies. Over the last week, the Thai Baht and other major Asian currencies have depreciated by approximately 2%, which reflects the broader market sentiment. The MYR has recently slipped to 7-day lows around 7.5688, lingering close to 0.9% below its 3-month average of 7.6366. This stability comes in the context of a 3.8% trading range between 7.5100 and 7.7918, indicating intermittent fluctuations rather than a strong trend.
Market analysts point to the ongoing volatility in oil prices, with crude trading around $64.76, which is notably 12.2% below its 3-month average of $73.75. Given Malaysia's position as a significant oil producer, sustained lower oil prices may adversely affect the MYR, leading to further depreciation pressures. Experts suggest that if oil prices remain weak, the MYR could face additional challenges in maintaining its value against the THB.
As both countries navigate these tumultuous economic circumstances, analysts advise businesses and individuals dealing in these currencies to stay vigilant and consider hedging strategies to manage potential risks associated with currency fluctuations. The forecasts suggest that while some stabilization may occur as regional responses to tariffs unfold, the overall sentiment remains cautious, and volatility may persist in the near term.
