The baht cements its early gains, comfortably outperforming all of its regional peers. Spot USD/THB last deals -0.302 at THB35.460, consolidating below its 50-DMA.
- The benchmark SET Index is little changed on the day, consolidating yesterday's gains. The index printed fresh two-month highs in the process.
- Sentiment has been bolstered by FinMin Arkhom's call for a modest pace of monetary policy normalisation.
- Elsewhere, the news that the gov't will downgrade the epidemiological risk posed by COVID-19 from October bodes well for the domestic tourism sector.
- Note that foreign demand for local assets picked up on Monday, with global funds buying a net $125.97mn of equities, per data from the Thailand Stock Exchange. This represented the largest net equity inflow since June 1.
Fig. 1: Thailand Stock Exchange Foreign Investors Net Flows ($)
Source: Bloomberg/Thailand Stock Exchange