The USD/MYR pair is trading above 4.80, marking a 4.5% decline year-to-date for the Malaysian ringgit against the US dollar.

Bank Negara Malaysia (BNM) appears relatively unconcerned about this weakness, potentially signalling a continuation of the downward trend for the ringgit. BNM has attributed the ringgit's decline to the strengthening of the US dollar and uncertainties in China's economy rather than domestic indicators.

However, the ongoing reduction in Malaysia's trade surplus adds to the MYR's challenges, given persistent external pressures and fragile demand from China.

While the weak ringgit benefits exporters in Malaysia's trade-dependent economy, stubbornly high global inflation has dampened product demand, suggesting a between a rock and a hard place dynamic for the currency.

However, the weaker MYR could ostensibly benefit the travel industry in Malaysia in the short term. Hence, we continue to think 4.80 is an overshoot, especially with expectations of a rate cut by the Federal Reserve in the year's second half.

Meanwhile, the USD/THB pair has surged above the 36-handle, indicating a 5.5% decline year-to-date for the Thai baht against the US dollar.

Thai Prime Minister Srettha has pressured the Bank of Thailand (BoT) to reduce policy rates following disappointing Q4 GDP figures, which showed a 0.6% quarter-on-quarter decline (1.7% year-on-year).

PM Srettha has called for an off-cycle policy meeting to implement an emergency rate cut despite the next official BoT policy meeting scheduled for April 10. The discussion of rate cuts has intensified following the release of the GDP figures, so traders have been buying USD/THB recently.

SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD rises toward 1.0500 ahead of US data

EUR/USD rises toward 1.0500 ahead of US data

EUR/USD finds a foothold in the second half of the day on Tuesday and rises toward 1.0500. The modest selling pressure surrounding the US Dollar helps the pair edge higher as investors await February Consumer Confidence Index data from the US.

EUR/USD News
GBP/USD regains traction, rises above 1.2650

GBP/USD regains traction, rises above 1.2650

GBP/USD gathers bullish momentum and trades above 1.2650 after declining toward 1.2600 earlier in the day. Market attention shifts to BoE Chief Economist Pill's speech and US Consumer Confidence data for further impetus. 

GBP/USD News
Gold extends correction toward $2,930

Gold extends correction toward $2,930

Gold stays under modest bearish pressure and declines toward $2,930. US President Donald Trump is expected to sign new executive orders following the news of his administration seeking to toughen semiconductor restrictions on China.

Gold News
Bitcoin edges below $90,000, ending its long streak of consolidation

Bitcoin edges below $90,000, ending its long streak of consolidation

Bitcoin (BTC) continues to trade in red, reaching a low of $88,200 during Tuesday’s early Europen trading session and hitting the lowest level since mid-November after falling 4.89% the previous day. 

Read more
Five fundamentals for the week: Fallout from German vote, Fed's favorite figure stand out

Five fundamentals for the week: Fallout from German vote, Fed's favorite figure stand out Premium

Statements, not facts, are set to dominate the last week of February. Further fallout from Germany's elections and new comments from Trump on trade may overshadow most figures –but not the Fed's favorite inflation figure.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Majors

Cryptocurrencies

Signatures

Best Brokers of 2025