Recent developments regarding the Malaysian Ringgit (MYR) and the Taiwan Dollar (TWD) have created a challenging landscape for their exchange rate, particularly amid the backdrop of rising tariffs imposed by the U.S. Analysts are observing increased volatility and downward pressure on both currencies, influenced by geopolitical tensions and trade dynamics.
The MYR has been significantly affected by U.S. President Donald Trump’s announcement of a 24% tariff on imports from Malaysia, part of a broader trade conflict. This has led analysts to reassess the outlook for emerging Asian currencies, which are now facing a deterioration in sentiment. Regional currencies, including the MYR, have experienced declines as tariffs have sapped risk appetite among investors. The MYR has recently reached 90-day lows around 6.8826, which is approximately 4% below its three-month average of 7.1675, indicating a challenging environment for the currency. The volatility in the MYR has persisted, trading within a 9% range from 6.8826 to 7.5038, underscoring the uncertainty surrounding future movements.
Meanwhile, issues impacting the TWD include a swelling 32% reciprocal tariff on Taiwanese goods and concerns over a potential global tech slowdown, given Taiwan’s prominence in the semiconductor and electronics sectors. Experts warn that geopolitical tensions, particularly regarding relations with China, do pose risks for the TWD, which could also be sensitive to any shifts in global demand for technology products.
In terms of oil prices, the current rate at 67.77 USD per barrel sits slightly above its three-month average, which could help support the MYR, as Malaysia is a significant oil exporter. However, the volatility of oil, with a recent trading range of 31.1% from 60.14 to 78.85, suggests that while there might be some support from oil prices, sustained uncertainty in global trade markets could overshadow these benefits for the MYR.
Overall, the MYR to TWD exchange rate faces a precarious outlook influenced by U.S. trade policies, regional economic performance, and factors related to oil prices. Stakeholders should remain vigilant as movements in these currencies could be substantial in the coming weeks amid ongoing global uncertainties.