The Canadian dollar (CAD) is currently trading at approximately 2.9921 MYR, which is about 1.5% lower than its three-month average of 3.0376 MYR. This recent stability occurred within a range of 2.9868 to 3.1044 MYR, indicating a relatively narrow trading corridor. Analysts note that the performance of the CAD is closely linked to commodity prices, particularly oil, as Canada is one of the world's leading oil exporters.
Recent developments have shown that oil prices are currently at $65.21 USD, down 1.3% from the three-month average of $66.1 USD. The volatility in oil prices, which has ranged from $60.96 to $70.13 USD, generally exerts significant influence on the CAD's value. As such, if oil prices remain low, the CAD may face further downward pressure, especially considering the Bank of Canada recently cut its key policy interest rate to 2.5% due to economic risks and a weakening job market.
On the other hand, the Malaysian ringgit (MYR) is benefitting from a combination of strong economic fundamentals and a trade surplus of MYR 16.1 billion reported in August 2025. The U.S. Federal Reserve's recent rate cuts are also supporting the MYR by weakening the U.S. dollar. Analysts have pointed out that Malaysia's steady GDP growth and continuing foreign investment are fostering confidence in the MYR. Bank Negara Malaysia's decision to maintain its Overnight Policy Rate at 3.00% further underscores a cautious but optimistic approach amid global uncertainties.
Overall, currency market participants should monitor both the developments affecting the CAD and MYR closely. The interplay between oil prices, interest rate decisions from both the Bank of Canada and Bank Negara Malaysia, and the broader global economic outlook will be crucial in determining future movements in the CAD to MYR exchange rate.
