Baht Weakens Amid Turmoil in Thailand's Ruling Coalition
0220 GMT — The baht weakens in morning Asian session amid turmoil in Thailand's ruling coalition government. Thai Prime Minister Paetongtarn Shinawatra faces political fallout after a leaked phone call between her and Cambodia's former leader Hun Sen related to the border dispute between the two countries, CIMB research analysts say in commentary. The knock-on effect has been that Bhumjaithai, the second-largest party in the coalition, is withdrawing from the government. This leaves the government with a slim majority and there are worries over political stability, the CIMB analysts add. USD/THB rises 0.4% to 32.79. (ronnie.harui@wsj.com)
0045 GMT — Asian currencies consolidate against the dollar as traders assess the Fed's hawkish tone and ongoing Middle East tensions. The FOMC's statement and Fed Chair Powell's remarks overnight indicate deepening worry over inflation despite signs of economic slowdown. Meanwhile, the Israel-Iran conflict has continued, with Israel's military saying it struck more than 20 military targets in and around Tehran. USD/KRW is little changed at 1,376.34; AUD/USD edges 0.1% lower to 0.6502; USD/SGD is steady at 1.2856. (ronnie.harui@wsj.com)
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Thai PM's leaked phone call with Cambodia's Hun Sen sets off political backlash
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