The Malaysian Ringgit (MYR) has recently strengthened against the Vietnamese Đồng (VND), reaching 90-day highs near 6420. This represents a notable 1.8% increase over its three-month average of 6305 and has maintained stability within a 3.1% range between 6224 and 6420.
Several factors have contributed to the MYR's appreciation. Analysts highlight the MYR's robust performance against the US dollar, largely driven by expectations of a potential rate cut by the US Federal Reserve and a positive outlook for Malaysia’s economic growth. The country’s favorable trade balance, fueled by strong exports in electronics and commodities alongside sustained foreign direct investment, has further solidified investor confidence in the MYR. Additionally, the recent trade agreements secured by Malaysia during the ASEAN Summit, which included tariff exemptions, are expected to enhance the country's economic standing and support the MYR’s value.
Conversely, the Vietnamese Đồng faces challenges that could affect its exchange rate against the MYR. Experts predict a depreciation of around 3% for the VND against the US dollar in 2025, driven by global economic trends and a stronger dollar. Furthermore, the implementation of new regulations regarding cryptocurrency transactions may play a role in the VND's future stability. The adverse economic impact from severe flooding in Northern Vietnam, resulting in significant losses, also threatens to influence the VND's performance.
Market data indicates that while the MYR is currently on an upward trajectory, external factors such as fluctuating oil prices could impact this dynamic. Recent trends show that oil prices are at 30-day lows around 61.20, which is 4.9% below the three-month average of 64.38, having experienced volatility within a range from 60.96 to 70.13. Given the correlation between the MYR and oil prices, this decline in oil values could pose a risk to the MYR’s continued strength.
In summary, while the MYR benefits from solid economic fundamentals and a favorable trade environment, the VND's depreciation outlook combined with regional challenges presents a complex landscape for foreign exchange transactions. Monitoring these developments will be crucial for individuals and businesses engaged in international dealings.
