The recent exchange rate forecasts for the Malaysian Ringgit (MYR) against the New Taiwan dollar (TWD), as of October 2, 2025, reflect a complex interplay of economic factors influencing both currencies. Analysts observe that the MYR is currently trading at 7.2231, which is notably 1.8% above its three-month average of 7.0981, indicating a strengthening trend. This movement has occurred within a relatively stable range, with fluctuations between 6.8527 and 7.2731.
One key development influencing the MYR is the recent interest rate cut by Bank Negara Malaysia (BNM), which decreased the Overnight Policy Rate to 2.75% in July. Economists believe this move aims to bolster economic activity amidst external challenges, including U.S. tariffs on Malaysian exports. Despite these tariffs, which the BNM acknowledges could hinder growth, the diversified nature of Malaysia's economy is seen as a buffer.
In contrast, the New Taiwan Dollar has faced volatility amid concerns highlighted by Taiwan's central bank regarding U.S. tariffs and their potential impact on economic growth. Although Taiwan's economy remains robust, with a benchmark interest rate held at 2% to encourage stability, the central bank's minutes indicate a cautious outlook due to international trade uncertainties.
Market analysts note that ongoing currency fluctuations and export pressures are reshaping the broader economic landscape for both the MYR and TWD. Additionally, movements in oil prices, with current benchmarks at $64.53—about 5% below the three-month average—could further affect the MYR, given Malaysia's significant reliance on oil exports.
Looking ahead, both currencies may continue to be affected by external trade dynamics, interest rate policies, and geopolitical developments. As the situation unfolds, these factors will be crucial for individuals and businesses engaged in international transactions. EM forecasts suggest investors remain vigilant in monitoring these economic indicators for potential opportunities and risks.
