The Malaysian Ringgit (MYR) to Taiwanese Dollar (TWD) exchange rate is currently positioned at 30-day highs near 6.9840, reflecting heightened volatility recently with trading ranging between 6.8510 and 7.4743. This suggests a market that is reacting to various geopolitical developments, particularly those stemming from U.S. President Donald Trump's recent tariff announcements.
Analysts indicate that the imposition of a 24% tariff on Malaysian goods by the U.S. is exacerbating concerns within emerging Asian currency markets. Malaysia's decision not to retaliate, along with efforts to coordinate a regional response, may help stabilize the MYR, but the overall outlook seems precarious as fear of a broader trade war looms. The MYR could face further challenges, particularly as regional currencies, including the Thai baht and South Korean won, have experienced declines of around 2% in the face of increasing risk aversion.
At the same time, Taiwan is grappling with its own set of challenges, highlighted by a 32% tariff on Taiwanese goods imposed by the U.S. Additionally, Taiwan's economy is highly sensitive to global tech slowdowns, which could put further pressure on the TWD. Geopolitical tensions between China and Taiwan are also significant risk factors that market observers are closely monitoring.
The recent price movements in oil also play a role in shaping the MYR. As oil prices trade at 68.44, 1.5% above its 3-month average of 67.46, expectations for MYR could vary depending on future developments in the oil market. Given that Malaysia is a significant oil exporter, sustained high oil prices may provide some support for the MYR, despite the negative sentiment surrounding the tariffs.
Overall, the MYR to TWD exchange rate is currently influenced by a combination of local economic policies, international trade dynamics, and commodity price fluctuations. Analysts recommend vigilance in monitoring these factors as they anticipate further adjustments in the exchange rate influenced by both domestic and global economic developments.