Mitsubishi yen: the rebound in oil prices could put pressure on Asian currencies

In a study, the Mitsubishi Union monetary analyst indicated that the rebound in oil prices could put pressure on Asian currencies. Oil prices rebounded at a time of rising geopolitical risk premiums and declining oil rotations in the Strait of Hormuz. Asian currencies such as Thai baht and Indian rupee have shown greater sensitivity to the rebound in oil prices, with the exchange rate falling by about 1 per cent against the United States dollar last week. For the Thai baht, downside risk continues to dominate, especially at a time when Thailand ' s balance of payments situation has deteriorated。