The Malaysian Ringgit (MYR) is under pressure following the recent announcement by U.S. President Donald Trump imposing a 24% tariff on imports from Malaysia. This decision is part of a broader trade conflict that includes tariffs targeting several other countries, contributing to a deteriorating outlook for emerging Asian currencies. Analysts note that the MYR has reached 14-day lows against the U.S. dollar, currently at 0.2352, which is only slightly above its 3-month average of 0.2337.
In addition, the MYR has depreciated against the Euro, currently trading at 0.2012, which is 1.5% below its 3-month average. The ongoing trade tensions have fueled speculation and fear among investors, which has adversely affected regional currencies. Other Asian currencies such as the Thai Baht and South Korean Won have similarly declined by about 2% in response to these developments.
While the MYR has shown some strength against the British pound, reaching a 14-day high near 0.1742, it remains at near-average levels when compared to longer-term trends. There is also notable performance against the Japanese yen, standing at 34.66, which is 2.7% above its 3-month average.
Market analysts suggest that the recent increase in oil prices, which are trading at 70.36 — 4.9% above the 3-month average — may provide some support for the MYR, given Malaysia's status as a net oil exporter. Despite this, the broader sentiment in the market remains cautious as fears of a potential global trade war continue to loom.
Economic forecasts emphasize the importance of monitoring regional developments and the response from the Malaysian government, particularly as Prime Minister Anwar Ibrahim leads efforts for a coordinated response in Southeast Asia to the tariffs imposed by the U.S. Businesses and individuals engaged in international transactions involving the MYR should stay informed about these dynamics that could influence exchange rates significantly in the near term.
