The EUR/MYR pair is not a major by any stretch of the imagination. The base currency of the pair (EUR) is obviously a major. The Malaysian Ringgit on the other hand is not.
Created in 1992 by the Maastricht Treaty, the EUR should be the common currency of the European Union. Thus far, 17 member countries have adopted it, with a few more compelled by treaty to eventually introduce it.
With its shortcomings and vulnerabilities laid bare by the 2008 financial crisis and subsequent issues with Greece, the Euro became a much less attractive prospect for the countries bound to join it.
While Denmark and the UK have always had a treaty-based exception in this regard, countries such as Sweden, Hungary and Poland are de-facto avoiding the issue. While they must join at one point, the treaties do not spell out when that needs to happen. This way, reluctant countries can drag out the process for ever if they so wish.
The primary goal of the EUR is to give member countries economic stability. It eliminates exchange rate risk and it has successfully boosted tourism.
The Malaysian Ringgit is also informally known as the Malaysian Dollar. In its current form, the Ringgit dates back to 1975.
Before it, Malaysia cycled through a number of other currencies. In 1837, the country ditched the Spanish silver dollar in favor of the Indian Rupee. Following a 30-year long experiment, the Spanish Silver Dollar was re-introduced. It was later replaced by the Straits Dollar, and then eventually by the Ringgit.
The MYR is backed by an economy mostly based on services and manufacturing. Not long ago, Malaysia’s economy was an agricultural and commodity-focused economy, but that has been shaken up in recent years.
Economic turmoil has never been a stranger to the country. Over the last 6 years, the investment-profile of the economy suffered a series of rather significant setbacks.
The value of the Ringgit has reflected this state of affairs.
Around 1996, the Ringgit was trading at around 2.50 to the USD. It later dropped to 3.80. Currently, one USD is worth 4.1MYR – which is indeed quite a drop considering the inflation the greenback has seen over the years too.
The economies of the Eurozone and Malaysia are not really exposed to one another in any significant way.
When reacting to major announcements made by the ECB for instance, the MYR largely follows the lead of the Asia-Pacific currency basket.
EUR MYR Currency Converter
Other major currency pairs
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.