The MYR to THB exchange rate is currently range-bound, trading just above its 3-month average.
The Malaysian Ringgit (MYR) may strengthen due to improved economic fundamentals and a narrowing fiscal deficit, which should attract investment. With anticipated interest rate cuts from the Federal Reserve, the rate differential between Malaysia and the US is expected to tighten, benefiting the MYR. On the other hand, the Thai Baht (THB) is also supported by a robust current account surplus but faces challenges from a strong currency impacting export growth. Thailand's economy is projected to grow modestly, which may restrict aggressive THB appreciation.
The expected trading range for MYR to THB will likely remain stable in the near term. An upside risk could arise from increasing foreign investment in Malaysia as global economic shifts occur, while a downside risk would be a substantial drop in oil prices, which could adversely affect Malaysia's export revenues and economic momentum.