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Baht Goes Offered, Thailand's Diesel Price Cap Under Pressure

THB

Spot USD/THB trades +0.245 at THB32.755 at typing, with the baht under pressure amid fallout from the Russo-Ukrainian war. The rate is testing its 200-DMA (THB32.773) and a clearance of that level would bring Jan 20 low of THB32.822 into play. Bears look for a retreat under Feb 18 low of THB32.088.

  • The ongoing Russo-Ukrainian war is upending efforts by Thailand's Finance Ministry to keep retail diesel prices below THB30/litre. The Bangkok Post cited a ministry source who warned that if the government wants to continue pegging the price of diesel at that level, it may need to inject additional funds for the dedicated subsidy and further cut the diesel excise tax.
  • Thailand's manufacturing output will hit the wires within an hour, with BoP current account balance & trade balance due later in the day.
  • The main highlight during the remainder of this week is provided by monthly CPI data, due for release on Friday.

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