The Malaysian Ringgit (MYR) has experienced notable fluctuations recently, reflecting various domestic and international economic factors. As of September 2025, the currency's performance against the USD has reached 60-day highs at approximately 0.2378, marking a slight 0.6% increase over its three-month average of 0.2363. The MYR has remained stable within a 2.3% range of 0.2328 to 0.2382.
In the face of economic pressures, Bank Negara Malaysia (BNM) decided to maintain its overnight policy rate at 2.75% following a previous rate cut in July—the first in five years—due to global trade tensions and economic growth concerns. Analysts have indicated that these decisions align with a cautious approach amid the 19% tariffs imposed by the U.S. on Malaysian exports, which pose risks to the country's export-dependent economy. Despite these pressures, forecasts suggest a potential appreciation of the MYR, with projections of a strengthening range against the USD from RM4.10 to RM4.15 by December 2025, driven by anticipated fiscal reforms.
Meanwhile, the MYR's performance against the Euro has weakened, trading at 90-day lows near 0.2003, which is 1.0% lower than its three-month average. It has demonstrated a stable trading range of 3.3% between 0.2003 and 0.2069. Similarly, the MYR to GBP rate is also at 60-day lows near 0.1742, slightly below its three-month average and maintaining a stable range of 3.5% from 0.1722 to 0.1782. The MYR to JPY has hit 14-day lows at around 34.80, remaining close to its three-month average with a stable trading range of 4.1%.
Additionally, the price of Brent Crude oil has shown some volatility, currently priced at 68.47 USD, close to its three-month average. This development in oil prices can significantly impact the MYR, considering Malaysia's export structure heavily relies on oil revenue.
Overall, the MYR faces a mixed outlook as the geopolitical and economic landscape continues to evolve. Stakeholders in international transactions may want to monitor these trends closely, as potential adjustments in fiscal policy and trade dynamics could influence future currency valuations.
