Malaysian Ringgit - Thai Baht Forecasting
When determining the best time to make a foreign exchange transaction, in this case the MYR vs THB, you should pay attention to the recent market trends for both currencies.
Malaysian Ringgit (MYR)
The Malaysian ringgit is up around 2.5% against the US dollar for 2020 (in August) and is gaining favour from bank commentators such as HSBC due to the attraction of the carry trade - the ability to earn higher interest when holding MYR versus other major currencies.
Read more in the article MYR Forecasts.
Thai Baht (THB)
The Thai Baht has risen 4% so far this year against the US dollar due to greenback weakness, this won't help with the hoped for tourism lead recovery of the Thai economy post virus.
NAB told Bloomberg TV that it sees a recovery in Asian currencies in the 2nd half of 2020 if the coronavirus comes under control.
In 2018 tourism contributed around 20 percent of Thailand's total GDP, so the dramatic impact to tourism from the coronavirus pandemic is expected to plunge Thailand into a recession.
Recent years have been extremely kind to the baht and 2019 has been no exception. The Thai baht has been the best performing currency in Asia for 2019, the baht rose to a 6-year high against the US dollar (฿30.66) and to a 10-year high against the Australian dollar (฿21.35), as well as to long-term highs against a host of other major currencies.
The baht has previously being supported by Thailand’s large current-account surplus and has benefited from speculation that Thai stocks will soon be assigned a larger weighting in the MSCI Emerging Markets index, which would result in significant amounts of foreign capital entering Thailand.