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Baht Goes Offered As Thailand Mulls Fresh Restrictions


Spot USD/THB moved higher as onshore baht reopened, digesting the news that Thailand mulls the implementation of mobility restrictions in some regions. The rate last sits +0.155 at THB32.637, after topping out at THB32.660, its highest point since Apr 16, 2020.

  • Thailand's Covid-19 task force will consider Health Ministry's proposal to implement a partial lockdown in regions most affected by the latest outbreak. These include Bangkok Metropolitan Area, which is home to 10mn people and contributes 45% to the Thai GDP. The proposal will be discussed during today's meeting of the Covid-19 panel chaired by PM Prayuth at 1000ICT/0400BST.
  • The Chairman of the Thai Chamber of Commerce said that another nationwide lockdown would be unbearable and pushed for targeted restrictions coupled with efforts to accelerate the vaccination drive.
  • The BoT wil provide the weekly update on its foreign reserves today, with the next one providing the sole point of note on Thailand's data docket for next week.
  • A break above Apr 14, 2020 high of THB32.792 would give bulls a green light for targeting THB33.177, which represents the high print of Apr 2, 2020 and a key resistance level. Bears look for a pullback under Jun 25 low of THB31.740.

Fig. 1: Thailand Daily Confirmed Covid-19 Cases

Source: MNI - Market News/Bloomberg

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