Mitsubishi UFJ Sees Thai Baht and Other Asian Currencies Under Pressure From Higher U.S. Rates

Mitsubishi UFJ Bank said the Thai baht and other Asian currencies have remained under pressure against the U.S. dollar as U.S. interest rates stay higher for longer. According to Jin10, Mitsubishi UFJ Bank senior FX analyst Lloyd Chan wrote in a research note that the “higher for longer” U.S. rate environment was likely to create short-term downside pressure on regional currencies, particularly those with lower yields. The bank maintained a negative view on the baht’s near-term outlook. Chan said that while the Bank of Thailand expected economic growth this year to be more solid, concerns persisted that growth remained slow and uneven.