The exchange rate forecast for the Malaysian Ringgit (MYR) against the New Taiwan dollar (TWD) reflects a complex interaction of domestic monetary policy, global trade dynamics, and currency market conditions. As of September 9, 2025, the MYR has adjusted to a rate of 7.2057 TWD, up 2.4% from its three-month average of 7.0356, indicating a strengthening of the MYR in a relatively stable range of 6.8510 to 7.2731.
The recent decision by Bank Negara Malaysia to maintain the overnight policy rate at 2.75%, following a prior reduction in July, suggests a cautious approach to economic growth and inflation. Analysts believe that this stability will benefit the MYR, with forecasts indicating potential appreciation against the U.S. dollar, projected at RM4.10 to RM4.15 by December 2025. Factors contributing to this optimism include anticipated fiscal reforms and the initial interest rate cut in five years aimed at addressing economic uncertainties primarily influenced by U.S. tariffs on Malaysian exports.
In contrast, developments surrounding the TWD present challenges for the currency. Taiwan's central bank has enforced strict capital controls to manage the TWD's sharp appreciation, which has exceeded 10% this year. This policy aims to mitigate potential negative impacts on Taiwan's export-driven economy, raising concerns among investors about future currency vulnerabilities. Additionally, the central bank's decision to maintain its benchmark discount rate at 2% underscores a cautious stance amid global uncertainties and trade tensions with the U.S.
The evolving dynamics of the oil market further influence these currencies. Recent fluctuations in oil prices, currently at USD 66.99, which is 2.9% below the three-month average, may affect global economic conditions and, by extension, the performance of both currencies. As Malaysia is an oil-exporting nation, declining oil prices can exert pressure on the MYR, while Taiwan's economic outlook remains sensitive to external shocks.
Overall, both the MYR and TWD face their respective pressures and opportunities as analysts watch for further developments. Traders and businesses engaged in international transactions should remain attentive to these trends, as shifts in monetary policy and trade conditions will likely impact exchange rates in the coming months.
