The exchange rate forecast for the Malaysian Ringgit (MYR) against the New Taiwan Dollar (TWD) reflects a mix of domestic policy shifts and external economic pressures. As of now, the MYR is trading at 7.2153 TWD, which is significantly above its three-month average of 7.0729. This uptick suggests a response to several key developments affecting the MYR, including recent interest rate cuts by Bank Negara Malaysia (BNM) aimed at bolstering the economy amid ongoing global trade tensions. The BNM's reduction of the Overnight Policy Rate to 2.75% marks a shift that may influence investor sentiment, albeit concerns about a 24% U.S. tariff on Malaysian exports continue to loom large, impacting economic growth forecasts.
External factors, particularly U.S. Federal Reserve policies and geopolitical tensions, have been identified as core drivers of the ringgit's performance, with analysts suggesting that these influences may lead to further volatility in the MYR-TWD exchange rate. Additionally, oil prices, currently at a 30-day high of 70.13 USD, have risen 2.9% above their three-month average. Such changes in oil prices are crucial for the MYR, as Malaysia is a net oil exporter, and increasing oil prices typically provide upward support for the currency.
On the other hand, the TWD has shown resilience against the backdrop of Taiwan's central bank maintaining its benchmark interest rate at 2%, alongside an optimistic 2025 growth forecast, suggesting strength in exports, particularly in AI-related sectors. However, the appreciated value of the TWD, which has risen over 10% against the USD since April 2025, has led to increased scrutiny and caution from the central bank regarding potential negative impacts on exporters.
Fitch Ratings' recent watch listing of Taiwanese life insurers due to the currency's volatility also underscores a fragile balance in the market, as significant fluctuations present both risks and opportunities. Analysts indicate that while the MYR may face continued challenges from external pressures and domestic monetary policies, the TWD's recent performance may provide a counterbalancing effect.
In conclusion, ongoing developments related to export dynamics, tariff implications, and monetary policy decisions from both Malaysia and Taiwan will play critical roles in shaping the MYR to TWD exchange rate in the near term. Individuals and businesses engaged in international transactions should remain vigilant to these factors and consider the current exchange rate trends for optimal currency conversion strategies.
