Recent forecasts and currency market analyses suggest a robust outlook for the Malaysian Ringgit (MYR) against the New Taiwan dollar (TWD). The MYR has appreciated significantly, approximately 4.0% above its three-month average of 7.4538, currently trading at 7.7547. This appreciation can be attributed to a weakening US dollar and positive economic developments in Malaysia. Analysts have noted substantial GDP growth in Q3 2025, boosting investor confidence. Furthermore, the stable monetary policy by Bank Negara Malaysia, which maintains the Overnight Policy Rate at 3.00%, reflects a commitment to economic resilience.
Additionally, the conclusion of a reciprocal trade agreement with the United States has positioned Malaysia favorably in terms of trade competitiveness, further underpinning the MYR's strength. These factors combined indicate a positive trajectory for the MYR, enhancing its appeal in the currency markets.
On the other hand, the TWD faces challenges stemming from regulatory changes and external pressures. The mandatory clearing of TWD interest rate swaps through the Taiwan Futures Exchange aims to improve transparency but may introduce market volatility. In recent months, the TWD experienced fluctuations, first appreciating beyond 29 per USD and then reverting to around 30 per USD. This volatility is exacerbated by concerns over the potential impacts of global economic downturns on Taiwan's export sector.
Taiwan's central bank has publicly committed to maintaining exchange rate stability without direct manipulation, contributing to a modest appreciation of the TWD against the USD in November. However, external factors, such as significant tariffs imposed by the U.S., continue to pose risks to Taiwan's export competitiveness.
Furthermore, recent oil price movements, with OIL to USD prices at $60.89—3.9% below the three-month average—affect both the MYR and TWD. Given Malaysia's status as a net exporter of oil, fluctuations in oil prices can directly impact the MYR's strength. The recent volatility in oil prices, trading in an 18.8% range, underscores the interconnectedness of commodity prices and currency valuations.
In summary, while the MYR shows signs of strengthening attributed to favorable domestic conditions and international trade dynamics, the TWD is currently navigating through challenges that may hinder its appreciation. Market participants should stay vigilant regarding these developments, as they could significantly affect currency exchange rates in the coming months.
