Recent forecasts regarding the MYR to VND exchange rate indicate a cautious outlook amidst escalating trade tensions and regional currency volatility. Analysts have highlighted that Malaysia is facing challenges from U.S. tariffs, especially following President Trump’s announcement of a 24% tariff on Malaysian imports. This development has raised significant concerns about how it will affect Malaysia's economic interactions and currency strength, especially with regional currencies experiencing declines.
The Malaysian ringgit (MYR) has recently hit 14-day lows against the Vietnamese dong (VND), trading near 6141. This represents a slight rise of 1.0% above its three-month average of 6082, although the MYR's price movements remain within a relatively stable range of 5824 to 6225. However, a broader negative sentiment has emerged in the currency markets, primarily influenced by fears of a trade war, as the Thai baht and South Korean won both fell around 2% in response to the same tariff news.
In addition to trade issues, fluctuations in oil prices are also impactful, as Malaysia is a major oil exporter. As of now, oil prices are at $70.36, which is 4.9% higher than their three-month average of $67.09, despite a notable volatility range of 31.1% from $60.14 to $78.85. This upward trend in oil prices may provide some support to the MYR if the upward momentum can be sustained, offering potential resilience amidst external pressures.
Economists warn that with Malaysia poised to coordinate a regional response to U.S. tariffs, the MYR could face further fluctuations if these tensions exacerbate. As such, businesses and individuals engaging in transactions across the MYR-VND pair should remain vigilant and consider the implications of both regional trade dynamics and oil market trends on their financial dealings.