MYR/VND Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver.
Key drivers:
• Rate gap: The Malaysian central bank's recent measures have positioned the MYR favorably compared to the VND.
• Risk/commodities: Oil prices are currently above average, supporting the MYR due to Malaysia's status as a major oil exporter.
• One macro factor: Malaysia's GDP growth of 5.2% has boosted confidence in the MYR, while Vietnam's upcoming legislative elections could bring uncertainty for the VND.
Range:
Expect the MYR/VND movement to hold within its recent range, as it stays stable above the 3-month average.
What could change it:
• Upside risk: Stronger-than-expected oil prices could further support the MYR's position.
• Downside risk: Any economic instability in Vietnam leading up to the elections may harm the VND, impacting the MYR/VND rate.