Forecasts for MYR to VND
The exchange rate forecasts for the MYR to VND reflect a challenging backdrop influenced by recent geopolitical developments. Analysts foresee mounting pressure on the Malaysian Ringgit (MYR) following the U.S. administration’s announcement of a 24% tariff on Malaysian imports, which has prompted concerns about escalating trade tensions. Despite Malaysia's decision not to retaliate and its efforts to foster regional solidarity in response to these tariffs, the overall sentiment in emerging Asian markets appears to be deteriorating.
The MYR has recently traded at 90-day highs around 6090 VND, representing a significant rise of 5.1% over its three-month average of 5795 VND. However, the currency has exhibited considerable volatility, fluctuating in an 8.2% range between 5630 and 6090 VND. This volatility underscores the uncertainty generated by trade policy changes and regional economic dynamics.
Furthermore, forecasters note that broader economic factors, such as the performance of regional currencies amid fears of a global trade war, have contributed to the cautious optimism that existed earlier this year. The Thai baht and the South Korean won have both experienced declines of approximately 2%, reflecting a general retreat in risk appetite across emerging markets.
Compounding these challenges, the price of crude oil has also seen significant movements, currently trading at 90-day lows around 61.29 USD, which is considerably lower, at 13.2%, than its three-month average of 70.61 USD. The high volatility in oil prices, trading in a 25.6% range from 61.29 to 76.99 USD, could further impact the MYR given the Malaysian economy's substantial dependence on oil exports.
In summary, while the MYR to VND exchange rate has seen recent highs, the outlook remains clouded by external trade pressures and fluctuations in global oil prices. Analysts expect that these dynamics will continue to influence the exchange rate, urging caution for businesses and individuals engaged in international transactions.
