Baht Takes Hit As Thailand Scrambles To Contain Covid Resurgence

The baht has sold off and turned into the worst performer in the region today, as Thailand's deteriorating Covid-19 situation has sparked concerns over imminent implementation of fresh restrictions. Spot USD/THB trades +0.025 at THB31.420 as we type.

• Tomorrow's meeting of the local Covid-19 task force will provide much interest, with officials set to consider stricter curbs. Dep PM & Health Min Anutin suggested that the situation is expected to "return to normal" in two or three months, while Dep PM Supattanapong denied that the resurgence of infections would derail plans to start re-opening tourism in July.
• Anutin also said that Bangkok's main sport facilities will be turned into field Covid-19 hospitals amid concerns about the shortage of ICU beds.
• Meanwhile, PM Prayuth noted that the gov't will adopt a single command system for coordinating the national vaccination drive, as it plans to inoculate 30mn people over the next three months.
• Fiscal Policy Office chief noted that the gov't has earmarked THB300bn for new measures to mitigate the impact of the third wave of infections.
• As a reminder, there's a weekly cabinet meeting today, chaired by PM Prayuth. Separately, the Health Ministry holds a briefing on the Covid-19 situation.
• On the data front, focus falls on the BoT's M'fing Production Index, due tomorrow. BBG consensus forecast is a 0.40% Y/Y decline, following a 1.08% fall the prior month.
• Later in the week, BoP & trade data as well as the usual update on foreign reserves hit the wires on Friday.
• A rally past Apr 12 high of THB31.575 would confirm that bulls are in the driving seat, while a dip under Apr 19 low of THB31.173 would suggest that bears may be taking control.