MYR/THB Outlook:
The MYR/THB rate is currently above its 90-day average and trading near recent highs, indicating a slightly positive outlook. This strength is supported by robust economic growth in Malaysia, particularly in the construction sector.
Key drivers:
• Rate gap: Bank Negara Malaysia has maintained its policy rate, helping to sustain the MYR's strength against the THB.
• Risk/commodities: Oil prices have surged above average levels, benefiting the MYR as higher oil prices support the Malaysian economy.
• One macro factor: Strong investments in Malaysia's tech sector, driven by the "China Plus One" strategy, are boosting the demand for the MYR.
Range:
Expect the MYR/THB to hold within its recent range, possibly testing previous highs.
What could change it:
• Upside risk: A further increase in foreign investments could enhance MYR strength.
• Downside risk: Any intervention by the Bank of Thailand to control the THB's appreciation may impact the MYR/THB rate.