The Malaysian Ringgit (MYR) has seen a notable appreciation against the New Taiwan Dollar (TWD), largely influenced by a series of positive economic developments in Malaysia. Analysts have highlighted that the MYR has reached 90-day highs near 7.5986, representing a 3.8% increase from its three-month average of 7.3168. This upward trend is attributed to a favorable economic outlook, stable interest rates, and robust GDP growth of 5.2% in the third quarter of 2025. The recent trade agreements secured at the ASEAN Summit have further improved Malaysia's export prospects, bolstering investor confidence in the MYR.
In contrast, while the TWD was initially buoyed by a raised economic growth forecast to 4.55% by Taiwan's central bank, concerns over potential U.S. tariffs linger, posing risks to Taiwan's export-driven economy. Such uncertainties could impact future monetary policy and create fluctuations in the TWD, which has experienced volatility recently, appreciating significantly before falling back to around 30 TWD per USD.
Economic analysts point out that developments such as the mandatory clearing of TWD interest rate swaps are also aimed at enhancing market stability, but the currency remains influenced by external factors, including oil price trends. The current oil prices, trading at $62.38, are down by 4.1% from their three-month average. Since Malaysia is a significant oil producer, fluctuations in oil prices can have direct implications for the MYR.
Overall, the favorable Malaysian economic indicators and trade advancements present a strong case for the MYR's continued strength against the TWD. Meanwhile, emerging concerns regarding Taiwan's export vulnerabilities may pressure the TWD in the near term. Investors and businesses engaged in international transactions should monitor these developments closely to capitalize on potential currency rate benefits.
