The Malaysian Ringgit (MYR) is currently facing downward pressure as a result of U.S. President Donald Trump’s recently announced 24% tariff on imports from Malaysia, part of an escalating trade conflict that signals worsening outlooks for emerging Asian currencies. Analysts note that this trade development is causing heightened uncertainty in regional markets, amplifying fears of a larger global trade war and decreasing overall risk appetite among investors.
In response, Malaysia has chosen not to retaliate against the tariffs. Prime Minister Anwar Ibrahim emphasized the country's commitment to engage with regional partners for a coordinated response to these trade measures. Nonetheless, the impact on the MYR has been notable, as its exchange rate has fluctuated. The MYR to USD pair is presently trading at near 7-day highs of 0.2365, a level above its 3-month average, while having maintained a stable trading range of 0.2305 to 0.2382.
against the Euro, the MYR is at 0.2026, just slightly below its 3-month average. The pair has moved within a stable range of 0.2004 to 0.2099 during this period. The MYR to GBP is at 0.1759, above its average, reflecting a more resilient performance, while the MYR to JPY shows a notable increase, trading at 34.76, significantly above its 3-month average.
Meanwhile, the backdrop of the MYR's performance is also influenced by crude oil prices, which are currently at $66.43 per barrel—2.8% below their 3-month average. The volatility in oil prices, which have seen a dramatic range of $62.78 to $78.85, is critical, as Malaysia’s economy is closely linked to oil revenues. Overall, with external pressures stemming from trade tariffs and fluctuating oil prices, market participants are advised to monitor these developments closely as they pertain to future MYR valuations.
