Recent forecasts indicate that the New Zealand dollar (NZD) has experienced upward movement due to a risk-on market sentiment, as noted by analysts observing its performance amidst a generally positive trading atmosphere. The NZD has been relatively stable, currently trading at 2.5409 MYR, just below its three-month average, and has maintained a tight 4.0% trading range between 2.5090 and 2.6095. The overall outlook for the NZD may hinge on international commodity demand, particularly in the context of potential tariffs imposed by the Trump administration on key trading partners, which could dampen economic momentum.
Conversely, the Malaysian ringgit (MYR) has faced significant challenges following the recent announcement of a 24% tariff on imports from Malaysia by the U.S. This development has contributed to rising unease among emerging Asian currencies, with reports indicating that the MYR, along with others in the region, has depreciated as market participants react to escalating trade tensions. Malaysia's response has been measured, aiming to align with regional partners while addressing the tariffs; however, this backdrop creates hesitance in investor sentiment.
Further complicating the outlook for the MYR is the volatile behavior of global oil prices, with recent data indicating that oil has traded at 68.44 USD, 1.5% above its three-month average. Given Malaysia’s position as a significant oil exporter, fluctuations in oil prices directly impact the value of the MYR. As the oil market remains susceptible to broader geopolitical tensions, both the NZD and MYR could experience additional volatility in the months to come.
In summary, while the NZD appears supported by a positive risk sentiment, the MYR is under pressure from external trade dynamics and oil price movements, making the NZD/MYR exchange rate a focal point for stakeholders engaged in international transactions.