Post by : Shakul

The Thai baht weakened against the US dollar on Friday, opening at 31.77 per dollar as global investors turned to safe-haven assets amid rising tensions in the Middle East. The currency declined from its previous close of 31.60, reflecting stronger demand for the US dollar as geopolitical uncertainty pushed markets toward safer investments.

Analysts said the strengthening of the dollar was also supported by higher US Treasury yields and expectations that the US Federal Reserve may keep interest rates elevated for longer. The yield on the 10-year US Treasury note recently moved close to 4.14%, while stronger-than-expected US economic data reduced expectations of near-term rate cuts.

Market strategists noted that concerns about prolonged conflict in the Middle East could push global oil prices higher, increasing inflation risks worldwide. If inflation remains elevated, the Federal Reserve may delay rate cuts, which typically strengthens the dollar and pressures emerging-market currencies such as the baht.

Despite the weakening trend, the baht’s decline was partly limited by some profit-taking in the dollar and volatility in other Asian currencies. The Japanese yen, which weakened toward 158 per dollar, also drew market attention as traders speculated about possible currency intervention by Japanese authorities.

Global equity markets reflected a cautious mood, with US stocks moving into a risk-off mode as investors weighed inflation concerns and interest-rate uncertainty. Analysts said the baht may continue to move within a volatile range in the near term as markets monitor geopolitical developments, US employment data, and signals from the Federal Reserve on its future policy direction.

#world news #Global News #Asia News