The MYR to TWD exchange rate is currently range-bound. Key drivers include the interest rate differential, as Malaysia's potential interest rate cuts may strengthen the MYR against the TWD. Meanwhile, Taiwan's central bank has committed to exchange rate stability, which could limit TWD volatility. The positive economic outlook for Malaysia, bolstered by fiscal reforms and improved foreign capital inflows, also supports the MYR’s position.
In the near term, expect the MYR to TWD rate to fluctuate within its recent 7.5% trading range. A significant upside risk could arise from a surge in global oil prices, which may bolster the MYR. Conversely, the downside risk includes any tightening measures from Taiwan’s central bank that could strengthen the TWD and dampen MYR gains. Recent trading shows the MYR at 7.7361, which is notably elevated compared to its three-month average.