The Malaysian Ringgit (MYR) is currently demonstrating a stable performance against major currencies, influenced by recent monetary policy decisions and external economic factors. As of mid-September 2025, the MYR to USD exchange rate is at 0.2375, near a 7-day low but just above its 3-month average, which has seen a restricted trading range of 2.5% from 0.2328 to 0.2387. In contrast, the MYR to EUR is stable at 0.2024, aligning with its 3-month average, while the MYR has recently reached 14-day highs against the GBP, trading at 0.1764.
Bank Negara Malaysia (BNM) has made a notable decision by maintaining its overnight policy rate at 2.75% earlier this month. This follows a significant rate cut made in July, the first in five years, which was aimed at addressing economic growth risks amid global trade tensions caused by U.S. tariffs on Malaysian exports. These tariffs, imposed at 19%, pose a risk to Malaysia's export-driven economy but analysts remain optimistic, forecasting MYR appreciation to a range of RM4.10 to RM4.15 against the U.S. dollar by December 2025, driven by anticipated fiscal reforms and the potential for further rate cuts.
The MYR to JPY is trading at 35.19, slightly above its 3-month average, suggesting a solid performance in the Asian currency market. Notably, oil prices, a crucial factor for Malaysian exports, are currently at 66.82 USD, which is 2.0% below the 3-month average of 68.16, reflecting a more volatile trading environment. The relationship between oil prices and the MYR remains significant, as fluctuations in oil can directly affect Malaysia's economic stability.
In conclusion, while recent developments, such as the steady interest rate and external tariff impacts, present challenges, market analysts view the future for the MYR with cautious optimism, suggesting potential for strengthening as economic conditions evolve.
