Forecasts for NZD to MYR
The New Zealand dollar (NZD) has seen a recent rally, largely attributed to market sentiment favoring risk-sensitive currencies. Analysts note that the optimism in markets is playing a crucial role in driving the NZD's performance, particularly in light of recent tariff announcements from U.S. President Donald Trump, which have sparked relief among traders regarding New Zealand's economic outlook. However, a potential correlation with the Australian dollar (AUD) suggests that the NZD's future movements may also be influenced by broader commodity market trends, especially with uncertainties surrounding major trading partners in the event of further tariff escalations.
In contrast, the Malaysian ringgit (MYR) faces significant pressure due to the 24% reciprocal tariff imposed by the U.S., which has been labeled as a part of an expanding trade war. Economists predict that the MYR's position could worsen as regional currencies demonstrate vulnerability amid trade tensions and diminishing risk appetite. The outlook for emerging Asian currencies remains bleak, with recent events causing a marked downward trend across the sector, including sizable drops in the Thai baht and South Korean won.
Currently, the NZD to MYR exchange rate stands at 2.6095, which is notably 2.7% higher than its three-month average of 2.5404. This indicates that the NZD has been in a relatively stable trading range between 2.4753 and 2.6329. However, the steady performance of the NZD might be tested given the backdrop of geopolitical and economic uncertainties.
Additionally, fluctuations in oil prices are likely to impact the MYR due to Malaysia's economic reliance on petroleum exports. Presently, oil prices are at $66.87, which is 6.8% below the three-month average of $71.74, indicating heightened volatility in the oil market with a significant trading range demonstrated recently. As oil prices fluctuate, they may add further complexity to the MYR's performance, especially in the context of regional trade dynamics and ongoing tariff discussions.
Overall, market forecasts suggest that the NZD could maintain upward momentum as long as risk sentiment remains positive. However, the MYR may continue to struggle under the weight of U.S. tariffs and regional economic conditions, leading to a potentially volatile exchange rate scenario in the near term. Traders should remain vigilant, watching for news developments related to tariffs and commodity prices to gauge their impact on the NZD to MYR exchange rate.
