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Baht Weakens Despite BoT Gov's Assurance That Rate Hikes Are Nigh

THB

Spot USD/THB sits +0.102 at THB36.715 as the U.S. dollar index (BBDXY) creeps higher in early Asia-Pac trade. The rate narrows in on Jul 15 cycle high of THB36.735 and a break here would open up the THB37.000 mark. Bears need a sell-off past Jul 11 low of THB35.882 to get some initial reprieve.

  • BoT Gov Sethaput said that interest-rate normalisation will come "sooner than later," according to an interview with Xinhua news agency. The governor pointed to the need to anchor inflation expectations, but stressed that tightening will be gradual, as the central bank needs to balance the risks to growth and inflation. Still, as the economic recovery becomes entrenched, the Governor sees the focus shifting towards inflation.
  • Reminder that the no-confidence debate against PM Prayuth and 10 ministers begins today.
  • Worth flagging that Thailand's customs trade data will be published on Friday.

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