The exchange rate forecast for the New Zealand dollar (NZD) against the Malaysian ringgit (MYR) has been influenced by a mix of domestic economic developments and broader market trends. Analysts have noted a sharp decline in the NZD, recently reaching a multi-month low due to deteriorating risk sentiment and concerns about the New Zealand economy. The Reserve Bank of New Zealand (RBNZ) has cut its official cash rate to a three-year low of 3.00% to foster a fragile economic recovery, highlighting ongoing vulnerabilities in domestic conditions.
Despite a rebound in New Zealand's consumer confidence index, the RBNZ's dovish stance and previous rate cuts, alongside growing external pressures from U.S. tariffs, have negatively impacted the NZD. Forecasts suggest that further monetary easing may be necessary as global uncertainties persist, which could keep the NZD under pressure in the near term.
On the other hand, the Malaysian ringgit has also faced challenges, most notably reflected in Bank Negara Malaysia's recent decision to cut its Overnight Policy Rate by 25 basis points to 2.75%. This marks a significant move aimed at bolstering the economy amidst geopolitical tensions and international trade issues. While the ringgit has been supported by a diversified economy, it remains susceptible to fluctuations driven by external factors, including U.S. tariffs and oil price volatility.
Recent data indicates that the NZD to MYR exchange rate is trading at 2.4347, which is 3.0% below its three-month average of 2.51, within a range of 2.4312 to 2.5754. The MYR may also be influenced significantly by oil prices, which are currently at 30-day highs near 70.13, suggesting a 2.9% increase from the three-month average of 68.13. These trends could provide some support for the MYR, given Malaysia's position as a net exporter of oil.
Overall, market experts indicate that both currencies are affected by domestic policy responses and external economic developments, with the NZD likely facing further headwinds from RBNZ policies and global risk sentiment, while the MYR could find grounding amid stable oil prices and a proactive central bank approach.
