The Malaysian ringgit (MYR) to Vietnamese dong (VND) exchange rate is under pressure amid escalating trade tensions and recent tariff announcements by the U.S. President. Analysts note that the U.S. has imposed a 24% tariff on imports from Malaysia, contributing to a broader context of a deteriorating outlook for emerging Asian currencies. The Malaysian government has opted for a cooperative approach and seeks to coordinate a regional response while clarifying misconceptions surrounding its own tariff policies.
Recent data highlights that the MYR to VND is trading around 6139, which is close to its 7-day lows and approximately 3.0% above its three-month average of 5965. The currency has fluctuated within a 7.6% range over the past weeks, indicating an environment of relative stability despite recent pressures. The broader regional sentiment is weighed down by the increasing risk aversion linked to fears of a global trade war, causing significant drops in several Asian currencies, including the Thai baht and South Korean won.
In addition, the MYR’s performance is influenced by oil price movements, a crucial factor for Malaysia's economy. Current oil prices are at $74.23 per barrel, which is 10.9% above the three-month average of $66.94 and have experienced considerable volatility, trading within a 24.7% range. Experts suggest that while higher oil prices may provide some support to the MYR, the ongoing trade tensions and tariff implications will likely continue to overshadow the currency's performance against the VND in the near term.
Overall, currency forecasters emphasize that the MYR could face further challenges ahead, particularly if U.S.-China trade discussions escalate. Stakeholders should remain vigilant and assess their currency transaction strategies according to the evolving geopolitical and economic landscape affecting the MYR to VND exchange rates.