The Malaysian Ringgit (MYR) has shown significant strength against both the US dollar and the Vietnamese đồng (VND), reaching 90-day highs near 6455 VND per MYR. This marks a 2.2% appreciation above its three-month average of 6318 VND, having traded within a relatively stable range of 6224 to 6455 VND. Analysts suggest that the MYR's rally is supported by multiple positive factors, including robust economic growth, a favorable trade balance, and strategic fiscal consolidation measures by the Malaysian government. The MYR's recent performance has also been aided by trade agreements stemming from the ASEAN Summit 2025, which are expected to enhance Malaysia's export capabilities.
In contrast, the VND is facing pressure from various challenges, including a forecasted depreciation of approximately 3% against the US dollar in 2025 due to global economic trends and a strengthening dollar. Recent developments such as the launch of a cryptocurrency regulation pilot program requiring transactions to be conducted in VND indicate Vietnam's attempts to stabilize and control its currency. Additional reporting requirements for large transactions may impact liquidity as well. Severe flooding in Northern Vietnam has also inflicted significant economic setbacks, further complicating the VND's outlook.
Market observers note that the MYR's potential for continued appreciation against the VND could be bolstered by oil price movements. Currently, oil prices are trading at USD 60.53, which is 5.2% below the three-month average of USD 63.82, experiencing volatility within an 18.8% range from USD 59.04 to USD 70.13. Given Malaysia's reliance on oil exports, any upward trends in oil prices could add to the MYR's strength, while the VND may struggle to maintain its value amidst economic uncertainties.
Overall, the current trajectory suggests a favorable environment for the MYR while the VND might face continued challenges, potentially widening the MYR to VND exchange rate in the coming months. Investors and businesses engaged in international transactions should monitor these developments closely to make informed decisions.
