Forecasts for MYR to TWD
The recent exchange rate forecasts for the Malaysian Ringgit (MYR) against the Taiwan Dollar (TWD) indicate a bearish outlook amid escalating trade tensions. Analysts have observed that the MYR is currently trading at 30-day lows near 6.9594, which is significantly 3.9% below its 3-month average of 7.2452. This downward trend aligns with broader market sentiment, as Asia’s emerging currencies have faced pressures from the ongoing US-China trade war sparked by the Trump administration's announcement of tariffs on various goods.
The imposition of a reciprocal 24% tariff on imports from Malaysia, as well as a 32% tariff on Taiwanese goods, has contributed to increased volatility in regional currencies. The MYR has traded in an 8.1% range recently, reflecting concerns over Malaysia's economic resilience in light of these developments. Experts suggest that Malaysia's response—or lack thereof—to the tariffs, particularly the decision not to retaliate but to seek regional collaboration, may mitigate some immediate negative impacts; however, the overall sentiment remains fraught with uncertainty.
Additionally, while the MYR is experiencing downward pressure, the TWD faces its own challenges, primarily resulting from a potential global tech slowdown and heightened geopolitical tensions concerning Taiwan and China. The technology sector, crucial for the Taiwanese economy, could see diminished growth prospects, which may further weaken the TWD.
Moreover, fluctuations in oil prices play a pivotal role in the MYR's performance, given Malaysia's status as a significant oil exporter. The recent uptick in oil prices, with Brent Crude OIL/USD trading at $74.23—10.9% above its 3-month average of $66.94—could provide some support to the MYR. Nonetheless, as markets adjust to rising tariffs and ongoing geopolitical tensions, the general outlook for the MYR toward the TWD appears precarious, necessitating close monitoring of both economic fundamentals and geopolitical developments in the coming weeks.