Oil Rebound Pressures INR and THB – MUFG

MUFG foreign exchange strategist Lloyd Chan has highlighted that the recent rebound in oil prices is adding pressure to Asian currencies. The Indian Rupee and Thai Baht are particularly affected, underperforming against the US dollar as inflation risks persist.

Higher crude costs exacerbate import bills for net oil-consuming economies like India and Thailand, increasing inflationary pressures. This environment supports the US dollar against these currencies, with the INR and THB facing continued headwinds in the near term.