Baht, SET Index Extend Losses Into Close Amid Lingering Political Uncertainty

The Thai baht is the worst performer in emerging Asia for the second consecutive day as the focus turns to the imminent House Speaker vote, slated for July 4. The deadlock in talks between the Move Forward Party and Pheu Thai over who should be the joint candidate for House speaker raised political uncertainty around the fate of the MFP-led eight-party coalition, taking a toll on local assets.

• Spot USD/THB has added 0.8% to last trade at 35.570 as we approach the closing bell. The pair showed at its highest point since November 2022 and is consolidating above its 200-DMA after piercing that moving average at the end of last week. It is worth noting that the RSI has entered overbought territory.
• The SET Index is down 0.75% as we type, plunging to its worst levels since February 2021. It is on track for the seventh consecutive day of losses and the worst close since December 2020.