Forecasts for MYR to TWD
Recent forecasts for the Malaysian Ringgit (MYR) to New Taiwan Dollar (TWD) exchange rate indicate a cautious outlook amid escalating trade tensions and regional currency volatility. The MYR has recently been trading at levels near 7.0863, which marks a 14-day high but remains 3.3% under its three-month average of 7.3289. Analysts observe that the MYR has experienced considerable fluctuations, with movements ranging from a low of 6.9394 to a high of 7.5038, illustrating the heightened uncertainty in currency markets.
U.S. President Donald Trump's announcement of a 24% tariff on imports from Malaysia has raised concerns about the impacts on the Malaysian economy. Economists note that Malaysia's decision not to retaliate suggests a strategy of engagement rather than confrontation, yet the psychological effects of these tariffs on the markets cannot be underestimated. Regional currencies, including the MYR, have been adversely affected, particularly following Trump's recent tariffs on China which have further dampened sentiment and increased the risk that emerging Asian currencies might continue to slide.
In comparison, the TWD is facing its own pressures from a 32% tariff imposed by the U.S. as part of the ongoing trade war. Furthermore, looming threats of a global tech slowdown and geopolitical tensions between China and Taiwan pose additional risks, potentially impacting Taiwan's robust technology sector and, by extension, the TWD. Analysts have been closely monitoring these developments, as geopolitical instability can lead to rapid currency fluctuations.
Meanwhile, the volatility of oil prices also plays a significant role in influencing the MYR. With recent oil prices at $64.78, which is 4.8% below the three-month average, and a wide trading range from $60.14 to $75.02, fluctuations in oil prices can further compound the challenges faced by the Malaysian currency. The Malaysian economy, being heavily reliant on oil exports, could see a decline in the MYR if oil prices remain low or continue their downward trend.
Overall, forecasters highlight a deteriorating outlook for both the MYR and the TWD as they navigate through turbulent economic waters, with cross-currents from trade tensions and commodity price changes likely to further complicate their exchange rate trajectories in the near term.
