The recent exchange rate developments indicate a strengthening of the Malaysian Ringgit (MYR) against the Indian Rupee (INR). Currently, the MYR to INR exchange rate stands near 21.17, which is 1.4% above its 90-day average of 20.88. This rise reflects stable trading within a 3.9% range over recent months, signaling relative stability and investor confidence in the MYR.
Support for the MYR has been driven by several key factors. Analysts attribute the currency's recent performance to the U.S. Federal Reserve's ongoing rate cuts, which weakened the U.S. dollar and bolstered the MYR. Malaysia’s economic fundamentals remain strong, evidenced by steady GDP growth and increased foreign direct investment, which further enhance confidence among investors. Additionally, the country recorded a significant trade surplus of MYR 16.1 billion in August 2025, backed by growing exports and strategic market diversification.
On the other hand, the INR has faced pressures due to external circumstances and domestic challenges. The Reserve Bank of India (RBI) recently intervened in the currency market, selling up to $5 billion to stabilize the rupee amid rising trade tensions following a 50% tariff imposed by the U.S. on Indian exports. This intervention prompted a considerable shift in market sentiment, with increased demand for INR options following the RBI's actions.
Concerns about volatility also loom for the INR, with the ongoing dynamics of U.S.-India trade relations contributing to instability. Markets have reacted to external pressures, including the Federal Reserve's policies that influence the dollar's strength, further impacting the rupee’s value. As a result of these developments, forecasters remain watchful of currency fluctuations, indicating a cautious outlook for the INR versus the MYR.
Additionally, the price movements in the oil market may also influence these currencies, as Malaysia’s economy is sensitive to oil prices. Currently, oil is trading at $65.07, which is slightly below its three-month average of $66.21, amidst a notable volatility of 15.0% over recent weeks. As oil prices fluctuate, the impact on the MYR could either support or undermine its position against the INR.
In summary, while the MYR appears poised for further strength, bolstered by positive economic indicators and favorable trading conditions, the INR faces significant headwinds that may hinder its performance. Stakeholders should remain informed of these developments to make more strategic decisions regarding international transactions.
