The exchange rate forecast for the Malaysian Ringgit (MYR) to Thai Baht (THB) has been influenced by a mix of recent economic developments in both Malaysia and Thailand as of December 2025. Analysts noted that the MYR appreciated to a 13-month high against the US dollar, driven by expectations of an interest rate cut by the US Federal Reserve and a strong economic outlook for Malaysia. Factors such as robust export performance, particularly in electronics and commodities, positive foreign direct investment, and fiscal consolidation efforts by the Malaysian government have bolstered investor confidence in the MYR.
However, the MYR to THB exchange rate has seen a decline to 60-day lows near 7.6744, which is 0.6% below its three-month average of 7.7178. This price data indicates that MYR has traded within a stable range of 4.5%, oscillating between 7.5180 and 7.8548. Economists believe this current weakening could be linked to broader movements influenced by external conditions rather than domestic strengths.
In contrast, the Thai Baht (THB) is facing pressure from the Bank of Thailand's measures aimed at curbing its appreciation due to negative inflation and anticipated economic challenges. With inflation reporting negative figures for the eighth consecutive month, the Bank of Thailand is expected to reduce interest rates soon to support growth amid a competitive export environment. While this strategy may indeed provide short-term relief for the THB, it also suggests that the THB could remain under downward pressure, further complicating its exchange performance against the MYR.
Moreover, oil prices, which play a significant role in the Malaysian economy, recently reached 30-day lows near $61.20, significantly below the three-month average of $64.38. This trend, alongside the volatility in oil prices, could further impact the stability of the MYR, given its sensitivity to oil market performance.
In summary, while positive indicators from Malaysia support the MYR's positioning, the recent low in the MYR to THB exchange rate highlights the complexities of currency interactions influenced by both domestic and external economic factors. Analysts will continue to monitor these developments as they could alter the expectations for the MYR's performance against the THB in the near term.
