Forecasts for MYR to THB
Recent forecasts and market updates indicate a challenging outlook for the Malaysian Ringgit (MYR) against the Thai baht (THB), largely influenced by ongoing trade tensions and tariff announcements. Following U.S. President Donald Trump's announcement of a 24% tariff on imports from Malaysia, concerns over escalating trade wars have intensified. As regional currencies, including the MYR and THB, have begun to slide, the overall sentiment in emerging Asian currencies appears to be deteriorating.
Analysts note that both Malaysia and Thailand are experiencing negative impacts from these tariffs, which have contributed to a decline in risk appetite among investors. The MYR is currently trading at 7.6861 THB, just above its three-month average and within a stable 4.4% range. However, with the pressure from the tariffs and rising fears surrounding the global trade landscape, the MYR could face further volatility.
Moreover, the declining prices of oil, now at 14-day lows near 63.90 USD, also add to the complexity of the situation. Oil prices are 5.1% lower than their three-month average, and given the region's dependence on oil exports, this trend could adversely affect the MYR's valuation. Economists suggest that weaker oil prices combined with external economic pressures could lead to continued fluctuations in the MYR/THB exchange rate.
Regional central banks are also responding to these economic pressures, with several cutting interest rates to stimulate growth. This has led to further unease in the currency markets, prompting forecasters to advise caution. As the situation evolves, stakeholders in international transactions should remain vigilant, as the MYR/THB exchange rate may continue to be influenced by external tariff impacts and oil price dynamics.
