The exchange rate forecast for the Malaysian Ringgit (MYR) to Vietnamese Dong (VND) is currently under significant pressure due to geopolitical tensions and economic policies. Recent announcements by U.S. President Donald Trump of a 24% tariff on Malaysian goods have heightened concerns surrounding trade relations, contributing to a negative sentiment for emerging Asian currencies. As the MYR responds to these external shocks, analysts note that the regional currency market is reacting unfavorably, with a notable decrease in risk appetite.
Data indicates that the MYR to VND rate has climbed to 6203, which is 2.5% above its three-month average of 6051. This rise reflects a volatile trading range over the past few months, oscillating between 5760 and 6225. The current fluctuations can be attributed to broader instability in the region, driven by fears of an escalating trade war as highlighted by economists.
The recent trend in oil prices also plays a critical role in the MYR's performance, given Malaysia's dependence on oil exports. With oil trading at $68.80, above its three-month average of $66.66, this uptick could provide some support for the MYR, albeit the volatility in oil trading, seen at a range from $60.14 to $78.85, poses ongoing risks.
In summary, analysts are cautious about the MYR's outlook against the VND, with external tariff pressures and regional currency weaknesses shaping expectations. It remains vital for businesses and individuals engaging in currency transactions to stay informed of ongoing geopolitical dynamics and to strategize accordingly to mitigate potential losses stemming from market volatility.