A Strong Outperformer

USD/THB sits around 34.50 currently. Through March dips towards 34.40 have been supported in the pair, although the baht is still ~2.50% up for the month so far, comfortably ahead of the next best performer (the won +0.90%). If the baht was following ADXY trend closer it would arguably be closer to 35.00.

• The currency may be seen as a somewhat of a safe haven in the region given the current turmoil in global banking stocks. Anecdotes from China suggest further momentum around outbound tourism.
• Still, Thai equities have fallen sharply, significantly underperforming the more resilient baht trend.
• Outflows from local equities remain, although not to the same degree seen in late Feb/early March. This week we are tracking at -$172.50mn. Bond inflows have been more positive, although doesn't always translate into FX strength as some of these flows can be FX hedged.
• The other focus point is likely to the upcoming election, with Thai PM Prayuth Chan-Ocha set to dissolve local parliament soon, as the 4 year term for the House of Reps. ends on March 23.