The recent exchange rate forecast for HKD to MYR indicates a stable yet cautious trajectory as influenced by various economic developments. Currently, the HKD trades at 0.5399, slightly below its three-month average, reflecting a trading range stability of 1.7% from 0.5360 to 0.5450. Analysts have noted that the Hong Kong Monetary Authority (HKMA) has been actively defending the HKD to maintain its stability amid global fluctuations, particularly following recent interest rate cuts and foreign exchange interventions aimed at upholding the currency peg.
In September 2025, the HKMA cut its base interest rate by 25 basis points to 4.50%, the first reduction since December 2024. This action was aligned with a broader trend of rate cuts by the U.S. Federal Reserve, which has resulted in a weaker U.S. dollar. The implications for the HKD are significant, as these measures aim to support its value against the backdrop of increasing market pressure and declining U.S. dollar strength.
On the other hand, the Malaysian Ringgit (MYR) has been bolstered by favorable economic conditions. The Malaysian economy is demonstrating resilience with steady GDP growth and significant foreign direct investment, which collectively enhance investor confidence. The recent trade surplus of MYR 16.1 billion in August 2025 illustrates robust export performance and strategic economic diversification efforts. Additionally, Bank Negara Malaysia's decision to maintain its Overnight Policy Rate at 3.00% indicates a careful approach to monetary policy during challenging external circumstances.
With the MYR benefiting from positive domestic economic trends and a weaker U.S. dollar, forecasters anticipate continued support for the currency. The recent volatility in oil prices, with Brent Crude OIL/USD trading at 65.07—1.7% below its three-month average—may add further fluctuations since Malaysia is an oil-exporting nation. Should oil prices become more favorable, this could enhance the strength of the MYR further.
In summary, forecasters suggest that while the HKD may remain stable within its current range, the MYR could strengthen against it, depending on ongoing developments in both currency markets and global economic conditions. Stakeholders engaging in multi-currency transactions are encouraged to monitor these trends closely, as they could impact costs, particularly for international businesses and individuals.
