Mitsubishi UFJ: The fate of Asian interest rates and exchange rates depends on the Strait of Hormuz

Golden Ten Data reported on March 16 that Lloyd Chan, an analyst at Mitsubishi UFJ Financial Group, stated that how the Middle East conflict will ultimately impact Asian economies, foreign exchange, and interest rate markets depends on the situation in the Strait of Hormuz and what measures can be taken to effectively reopen the strait. He pointed out that this is not only about crude oil prices, but more importantly about the flow of refined products such as aviation fuel and gasoline. The measures taken by the Trump administration to reopen the strait, including seeking help from allies, do not seem very convincing. For Iran, causing greater economic losses to its opponents through oil prices is logical. Shipping and insurance companies will only regain confidence when they see reliable shipping routes operating without incidents. On the positive side, we have noticed reports of ships being allowed to pass, and alternative pipelines in Saudi Arabia and the UAE seem to be gradually increasing their throughput.