Forecasts for NZD to MYR
Recent forecasts suggest a cautious outlook for the NZD to MYR exchange rate, influenced heavily by escalating trade tensions and regional economic factors. The New Zealand dollar (NZD) has faced downward pressure following a 10% tariff imposed by U.S. President Donald Trump on imports from New Zealand. This move aligns with broader tariffs targeting other global economies. Additionally, the NZD has shown a negative reaction to the Reserve Bank of Australia’s (RBA) recent announcements, primarily due to its strong correlation with the Australian dollar (AUD), a trend likely to continue as broader market sentiment remains shaky.
For the Malaysian Ringgit (MYR), a 24% reciprocal tariff on goods from Malaysia has compounded existing economic stresses. Analysts suggest that the MYR, similar to other emerging Asian currencies, is likely to face ongoing volatility amidst fears of a global trade war. Malaysia has taken a cooperative stance, seeking a regional response to U.S. tariffs, but this may not shield the currency from external pressures, particularly as market risk appetite diminishes.
The NZD to MYR exchange rate currently sits at 2.5327, just 0.6% below its three-month average of 2.5475, reflecting a period of relative stability within a 6.3% range. However, this stability could be disrupted by future movements in trade policies or shifts in commodity prices. Fluctuations in oil prices also play a critical role in the MYR's performance; currently, oil trades at $64.78 per barrel, which is 4.8% below its three-month average. Given that the MYR is sensitive to oil price movements, this could result in further instability in currency markets.
Market observers point to the intertwined dynamics of the NZD and MYR, suggesting that any increase in tariffs by the U.S. could dampen demand for key commodities, negatively impacting the commodities-dependent NZD. With heightened global uncertainties, analysts indicate that both currencies may continue to navigate a difficult landscape in the near term, warranting careful attention from businesses and individuals engaged in international transactions.
