The prolonged Middle East conflict poses a dual pressure risk to Asian currencies
According to Jin Shi's report, Lloyd Chan from Mitsubishi UFJ Bank stated in a research report that the Middle East conflict may become prolonged, and risk-averse sentiment along with high energy prices will drive up inflation in the United States, leading to sustained high U.S. interest rates, which will support the dollar.
Chan pointed out that Asian currencies such as the Indian rupee, Philippine peso, South Korean won, and Thai baht face significant risks, as these countries rely on imported energy and are sensitive to high oil prices. Data shows that the dollar rose 0.5% against the Philippine peso to 60.763, having previously reached an intraday all-time high of 60.776.
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