The Malaysian Ringgit (MYR) has recently shown significant strength against the New Taiwan Dollar (TWD), currently positioned at 7.5551, which is 3.6% higher than its three-month average of 7.2894. This appreciation can be attributed to several favorable economic developments in Malaysia, including a stable monetary policy maintained by Bank Negara Malaysia, which has kept the Overnight Policy Rate at 3%. Analysts suggest that this stance signals a commitment to economic stability, thereby bolstering investor confidence in the MYR.
Furthermore, Malaysia's recent trade agreements made during the ASEAN Summit, which include tariff exemptions on over 1,700 products with the US, are expected to enhance export prospects and support the Ringgit even more. The country's robust GDP growth of 5.2% in Q3 2025, driven mainly by domestic consumption and exports, has further contributed to the currency’s appreciation.
In contrast, the New Taiwan Dollar faces pressures due to underlying concerns about potential U.S. tariffs impacting Taiwan's export-driven economy. Although Taiwan’s central bank recently revised its economic growth forecast upwards to 4.55%, the risks posed by global trade dynamics remain a significant concern. Additionally, the TWD has experienced volatility, trading beyond 29 TWD per USD before fluctuating back to around 30 TWD. Such volatility can impact exporters and the financial sector, particularly life insurers adjusting their strategies in response to foreign exchange pressures.
Moreover, oil prices, which have trended downward, currently at $62.56 per barrel, are 4.4% below the three-month average. This fluctuation could indirectly impact the MYR, given Malaysia’s status as a net oil exporter. Analysts suggest that consistent declines in oil prices could apply downward pressure on the MYR if not offset by domestic economic performance.
Overall, the current dynamics indicate a favorable outlook for the MYR against the TWD, driven by positive economic indicators and strategic policy decisions, while the TWD grapples with external trade concerns and internal market volatility.
