The MYR to THB exchange rate is currently range-bound.
Key drivers include the interest rate differential expected to narrow as the Federal Reserve considers cuts, which may strengthen the MYR. Positive economic outlooks for Malaysia, including robust GDP growth and improved fiscal standing, are supporting sentiment around the MYR. The Thai Baht is bolstered by capital inflows and a forecasted surplus, although growth concerns remain due to export slowdowns.
Over the next 1–3 months, the MYR is likely to trade within a stable range, reflecting recent price data. The forecasted stability sits between a narrow band against the THB near the historical trading averages.
An upside risk could come from continued high oil prices, which generally support the MYR due to Malaysia's oil exports. Conversely, a downside risk includes any unexpected economic slowdown in Thailand, which could affect investor sentiment towards the THB and distort the exchange dynamics.