Forecasts for MYR to TWD
The exchange rate forecast for the Malaysian Ringgit (MYR) against the Taiwanese Dollar (TWD) appears to be under pressure following recent developments in U.S. trade policy and regional economic performance. Analysts indicate that the imposition of a 24% tariff on imports from Malaysia by the U.S. could exacerbate negative sentiments towards emerging Asian currencies. This latest measure is part of a broader trade confrontation initiated by former President Donald Trump, which has already resulted in a decline in the MYR, now trading at 7.3195, approximately 1.1% below its three-month average of 7.4034.
The MYR's stability has been disturbed, particularly in light of how the regional currencies, including the Thai baht and South Korean won, have reacted to escalating trade tensions. The loss of risk appetite due to fears of a global trade war has already caused regional currencies to decline about 2% in recent weeks. Furthermore, Malaysia’s refusal to retaliate against U.S. tariffs while attempting to engage in dialogue reflects an effort to maintain regional stability, although it is unclear how this will impact the MYR-TWD exchange rate moving forward.
On the other side, Taiwan faces its own challenges with tariffs set at 32%. The TWD is particularly vulnerable to shifts in the global tech sector and rising geopolitical tensions with China. Experts suggest that any slowdown in technology demand could weigh on the TWD, given Taiwan's significant reliance on its electronics and semiconductor industries.
Notably, recent oil price trends could also influence the MYR, given Malaysia’s position as a significant oil exporter. The price of Brent Crude oil has fallen to $64.76, which is 12.2% below its three-month average of $73.75, suggesting potential headwinds for the MYR as lower oil prices can impact Malaysia's fiscal health and export revenues. Analysts forecast that the interplay between trade tariffs, regional economic conditions, and oil market dynamics will be critical in determining the MYR’s performance against the TWD in the coming weeks.
Overall, currency forecasters advise monitoring the unfolding geopolitical landscape and domestic economic responses, as these will be essential in navigating the MYR-TWD exchange rate trends.
