Baht To Finish Q1 As Worst Currency In Asian EMs

Spot USD/THB remains on a tear, hitting multi-month highs at it narrows in on resistance from Oct 26, 2020 peak at THB31.335. There has been talk of month-end demand for the greenback as lending support to the pair. The rate last sits +0.070 at THB31.315.

• The baht has been the worst performer in the Asian EM basket in the first quarter, with analysts pointing to the impact of the collapse of the tourism industry which used to be the backbone of Thailand's economy, as well as current-account deficit, USD strength and the repatriation of dividends by Japanese investors. Kasikornbank have also highlighted the influence of gold's weakness, as rural Thais typically keep their savings in the yellow metal.
• Starting next month, vaccinated foreign tourists will be able to visit Phuket, Krabi, Phangnga, Surat Thani (Koh Samui), Chon Buri (Pattaya) and Chiang Mai, but they will have to undergo a shortened, seven-day quarantine.
• Thailand will set up a new national pension programme, covering all employees who are not participating in other pension plans.
• A break above Oct 26, 2020 high of THB31.335 would encourage bulls to take aim at Sep 28, 2020 high of THB31.745. Conversely, bears look for a retreat under Mar 26 low of THB31.060, towards the 200-DMA at THB30.779.
• Dep PM Supattanapong will brief the media on the gov't's Covid-19 measures later today.
• The Office of Industrial Economics will publish industrial output data today, with BoP current account balance & trade data also due. Markit M'fing PMI & Business Sentiment Index headline the docket tomorrow.