Mitsubishi UFJ: Oil Rebound May Pressure Asian Currencies

Mitsubishi UFJ currency analysts said in a research report that a rebound in oil prices may pressure Asian currencies. According to Jin10, the rebound comes as the geopolitical risk premium rises and tanker traffic through the Strait of Hormuz declines. The Thai baht and the Indian rupee have shown greater sensitivity to the oil price rebound and fell about 1% against the U.S. dollar last week. For the baht, downside risks remain dominant, especially as Thailand's balance of payments deteriorates.