Baht Slips On Broader Market Impetus, BoT Leaves Key Rate Unchanged

Spot USD/THB trades +0.115 at THB32.872 as we type. Topside technical focus falls on Oct 18 high of THB33.488 and a break here would bring Oct 6 high/round figure of THB33.990/34.000 into play. Conversely, a fall through yesterday's low of THB32.725 would shift focus to Sep 10 low of THB32.618.

• The BoT voted unanimously to leave their benchmark policy rate at 0.50% yesterday, in line with consensus. The statement noted that policymakers "assessed that the Thai economy had bottomed out in the third quarter of 2021 and entered the recovery phase following the relaxation of containment measures and the re-opening of the country." The overall tone of the communique broadly reflected the BoT's previous comments and familiar economic assessment.
• The Constitutional Court judged that pro-democracy protesters violated the Thai charter, which bans attempts to "overthrow" the monarchy. The verdict will likely influence the ongoing debate about Thailand's political institutions.