The MYR to THB exchange rate has recently experienced challenges amid ongoing trade tensions and tariff announcements from the U.S. President Donald Trump's implementation of a 24% tariff on Malaysian goods is exacerbating the decline of both the Malaysian ringgit (MYR) and the Thai baht (THB). Analysts note that this move is part of a broader trend of rising tariffs that is contributing to increased uncertainty in emerging Asian currencies.
Both the MYR and THB have faced downward pressure, with the MYR trading near 30-day lows at approximately 7.6271, which is just 0.6% below its 3-month average of 7.6715. Over the past week, regional currencies have lost about 2%, reflecting market concerns about the potential for a full-blown trade war. The stability of both currencies has eroded as they fluctuate within a range of 4.4%, from 7.4980 to 7.8265, suggesting a lack of confidence among investors regarding future exchange rate stability.
Furthermore, oil prices have a considerable impact on the Malaysian economy, with OIL to USD currently at 74.23, significantly above its 3-month average of 66.94. This 10.9% increase reflects volatility in the markets, as prices have traded in a wide range of 24.7%. Since Malaysia is a key oil exporter, fluctuations in oil prices can lead to changes in the MYR's value; however, the current tariffs seem to be overshadowing potential benefits from rising oil prices.
In light of these developments, experts predict a cautious outlook for both the MYR and the THB as geopolitical tensions and trade policy shifts continue to dominate market sentiment. Currency analysts advise businesses and individuals engaging in international transactions to closely monitor these dynamics, as the interplay between tariffs and commodity prices could lead to abrupt fluctuations in the MYR to THB exchange rate in the near future.