The exchange rate forecast for the Malaysian Ringgit (MYR) against the New Taiwan Dollar (TWD) is influenced by a variety of domestic and international factors, with current levels reflecting notable trends. As of now, the MYR to TWD rate is 7.1285, which marks a 2.0% increase above its three-month average of 6.9894. The MYR has maintained a stable trading range of 4.2%, fluctuating from 6.8510 to 7.1384.
Key analysts highlight the impact of recent U.S. tariffs on Malaysian imports, set at 24%, which pose a challenge to the MYR's stability. Anticipation of interest rate cuts by the Federal Reserve could weaken the U.S. dollar, providing potential support to the MYR in the coming months. Additionally, Malaysia’s economy remains sensitive to oil price movements, with recent data showing oil trading at $65.85, which is 3.8% below its three-month average of $68.46. Given Malaysia's status as an oil exporter, fluctuating oil prices remain a critical factor for the MYR's strength.
On the other side, the TWD is also experiencing significant pressures. The U.S. imposed a 32% tariff on imports from Taiwan (excluding semiconductors), raising concerns regarding Taiwan's export-driven economy. The TWD has gained more than 10% this year, prompting the central bank to take measures against currency appreciation and warning foreign investors about compliance with capital control rules.
Furthermore, the possibility of Taiwan using currency revaluation as a negotiation tactic in trade discussions with the U.S. could influence the TWD's value. Yet, both leaders and central bank officials denied that exchange rate adjustments were part of recent tariff discussions, which adds a layer of uncertainty to future movements.
Overall, the MYR and TWD are shaped by external tariffs, domestic economic policies, and geopolitical developments. The interplay of these factors will be essential for those engaged in transactions involving these currencies, as fluctuations may present both risks and opportunities.
