Baht Weakens Amid Accelerating Equity Outflows

Spot USD/THB creeps higher, having a look above THB38.000 after a risk-negative Monday session. The rate last deals +0.168 at THB38.080. The THB38.450 cyclical high from Sep 28 provides the initial bullish target, while bears look for losses past Oct 6 low of THB37.125 and towards the 50-DMA at THB36.633.

• Foreign investors sold a net $91.78mn in Thai stocks on Monday, which was the largest daily outflow since Sep 15. The SET index fell ~0.6% amid risk-negative backdrop, approaching recent cyclical lows.
• The National Economic and Social Development Council (NESDC) warned that Thailand may be hurt by the global economic slowdown, which may evolve into a recession next year. FinMin Arkhom played down those fears, noting that the tourism sector will benefit from continued border reopening.
• PM Prayuth chairs a weekly Cabinet meeting today. Separately, the governor of the Tourism Authority of Thailand will hold a briefing on the tourism situation. The agency said yesterday that it targets 20mn foreign tourist arrivals next year, half the pre-pandemic figure.