Forecasts for MYR to TWD
Recent forecasts for the MYR to TWD exchange rate reflect a deteriorating outlook amidst escalating tensions in global trade. Analysts have noted that the Malaysian Ringgit (MYR) has come under pressure following U.S. President Donald Trump's implementation of a 24% tariff on imports from Malaysia. As Malaysia seeks to engage regionally rather than retaliate, the impact of these tariffs is likely to curtail investor sentiment, further exacerbating the downward pressure on the MYR.
Compounding these concerns, regional currencies have been experiencing a decline. The Thai baht and South Korean won have each seen a dip of approximately 2%, driven by rising apprehensions surrounding a potential global trade war. This downturn has led to a significant downward adjustment in Asian currencies, including the MYR. The current MYR to TWD exchange rate sits near 7.0284, marking a 3.7% drop below its three-month average of 7.3017. The MYR has fluctuated within a considerable 8.1% range in recent weeks, from a low of 6.9394 to a peak of 7.5038.
On the TWD side, the Taiwanese economy faces its own set of challenges. The U.S. has imposed a 32% tariff on goods from Taiwan, further complicating the trade landscape. Analysts note that a global technology downturn could adversely affect the Taiwan Dollar, especially given Taiwan's prominence in the semiconductor and electronics markets. Additionally, the looming threat of intensified geopolitical tensions with China could lead to heightened volatility for the TWD.
Oil prices also play a critical role in influencing Malaysian currency dynamics. Current data shows that oil prices are at 14-day lows near 63.90, which is 5.1% below the three-month average of 67.32. Given Malaysia's status as a major oil exporter, any significant volatility in oil prices can directly affect the strength of the MYR, amplifying the influence of international market movements on the currency.
In summary, the MYR to TWD exchange rate is poised for further volatility as both currencies grapple with increasing trade tensions and external economic factors. As analysts remain cautious of the outlook, businesses and individuals are advised to monitor these developments closely to navigate potential risks in international transactions.
