Forecasts for MYR to VND
The recent announcements regarding tariffs have cast a shadow over the Malaysian Ringgit (MYR), particularly against the Vietnamese Dong (VND). Analysts suggest that the 24% tariff imposed by the U.S. on Malaysian imports is adding pressure on the MYR and contributing to a less favorable outlook for emerging Asian currencies. Economists have noted that the broader regional currencies, including the Thai baht and South Korean won, have experienced declines of approximately 2%, indicating heightened fears of a widening trade war that affects risk sentiment across the board.
Currently, the MYR to VND exchange rate stands at 5949, which is significantly above its 3-month average of 5771, reflecting an increase of 3.1%. This upward movement is somewhat counterintuitive considering the pressures from the U.S. tariffs, with analysts indicating that the MYR has traded in a stable range between 5630 and 5952 in recent weeks. However, the stability might not last, as growing trade tensions are likely to introduce more volatility.
Additionally, the MYR is susceptible to external economic influences such as oil prices. Presently, oil is trading at 66.87 USD, which is 6.8% below its 3-month average of 71.74 USD. The highly volatile range of 61.58 to 78.50 USD hints at significant fluctuations that can impact the Malaysian economy, as oil is a crucial export for the country.
Markets are adjusting their forecasts, with experts urging caution as the situation develops. The combination of ongoing tariff disputes, coupled with concerns of potential retaliatory measures, could lead to increased volatility in the MYR/VND exchange rate in the months ahead. Stakeholders are advised to closely monitor these dynamics to better strategize their international transactions.
