The Malaysian Ringgit (MYR) has shown a notable appreciation against the Vietnamese Đồng (VND), currently trading at 6494 VND, which marks a 2.5% increase above its three-month average of 6334 VND. Over the past months, the MYR has demonstrated stability, fluctuating within a 4.4% range from 6224 to 6499 VND. This trend is influenced by several key factors supporting the MYR's strength.
Analysts have pointed to a weakening US dollar and robust economic performance in Malaysia as significant drivers behind the MYR's gains. Malaysia's GDP growth exceeded expectations in Q3 2025, enhancing investor confidence. Additionally, Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 3.00% reflects a stable monetary policy that bolsters the MYR. Furthermore, the conclusion of a trade agreement with the United States has improved Malaysia's competitive position in trade, further supporting the currency.
Conversely, the Vietnamese Đồng is facing challenges that could pressure its value. Experts forecast a potential 3% depreciation against the US dollar in 2025 due to broader global economic trends. Recent regulatory initiatives, such as the five-year pilot program to regulate cryptocurrency trading in VND, may also influence market dynamics. Moreover, severe flooding in Northern Vietnam has led to significant economic losses, potentially impacting the stability of the VND.
Adding to the complexity of the MYR to VND exchange rate is the recent volatility in oil prices. With oil trading at 60.89 USD, roughly 3.9% below its three-month average of 63.35 USD and experiencing an 18.8% volatility range, fluctuations in oil prices could indirectly affect the MYR due to Malaysia's status as a net oil exporter.
In summary, expectations for the MYR remain positive due to strong economic indicators and favorable trade conditions, while the VND is likely to face headwinds from regulatory changes, forecasted depreciation against the US dollar, and recent natural disasters. This divergence in economic fundamentals may continue to influence the MYR to VND exchange rate in the coming months.
