The recent announcements surrounding U.S. tariffs on imports from Malaysia have significant implications for the MYR to VND exchange rate. Analysts underscore a deteriorating outlook for emerging Asian currencies following U.S. President Donald Trump's decision to impose a hefty 24% tariff on Malaysian goods. This move, part of a broader trade conflict, has intensified concerns about a global trade war, contributing to a declining risk appetite among investors. Regional peers, including the Thai baht and South Korean won, have exhibited volatility, with both currencies dropping approximately 2% in response to market uncertainties.
As of now, MYR to VND is trading at around 6130, which is near 30-day lows and aligns with its three-month average. The MYR has moved within a stable range of 4.0%, fluctuating between 5983 and 6225 during this period. This stability comes amid external pressures, reflecting market sentiment that has been increasingly cautious.
Furthermore, the performance of oil prices remains crucial for the Malaysian ringgit, given Malaysia's role as a significant oil producer. Currently, oil is trading at $69.67, which is 2.5% above its three-month average of $67.98, indicating increased market volatility with a trading range spanning 31.1% from $60.14 to $78.85. Fluctuations in oil prices are expected to continue impacting the MYR, as analysts point out that oil price rises could potentially offer some support to the currency amidst the ongoing trade tensions.
Given these dynamics, forecasters suggest that businesses and individuals engaging in international transactions may need to remain vigilant, as the MYR could experience further fluctuations in response to both tariff developments and oil market movements. It will be essential to monitor these evolving factors closely for more informed currency exchange decisions.