The market bias for the MYR to VND exchange rate is currently bullish.
Key drivers include the interest rate differential, as the Federal Reserve's expected cuts may strengthen the MYR against the VND. Malaysia's improving fiscal position, marked by a narrowing deficit and rising foreign investments, supports this outlook. Additionally, strong economic fundamentals in Malaysia, including GDP growth, are encouraging for the MYR.
The expected trading range over the next few months appears stable but should remain above recent averages. Analysts suggest the MYR could trade above recent levels, given its current value of 6485 is already 2.1% higher than the three-month average of 6350.
An upside risk could arise from further positive shifts in global investment patterns benefiting the MYR, while a downside risk remains with fluctuating oil prices, as recent trends show oil dipping below 61, potentially leading to weakened MYR support.