BoT Stands Pat, Foreign Arrivals May Need 5 Years Before Returning To Pre-Covid Level

Spot USD/THB remains in an uptrend and last sits at THB31.055, slightly above neutral levels but shy of yesterday's peak as of yet.

• The Bank of Thailand acted in line with expectations yesterday, keeping its benchmark interest rate unchanged, trimming its 2021 GDP forecast to +3.0% Y/Y from +3.2% and slashing their projection of this year's tourist arrivals.
• Worth noting that the BoT pledged to monitor the exchange rate and said that they expect pressure on the bat to ease amid shrinking current account surplus.
• Per the latest update from the Tourism Ministry, tourist arrivals plunged 99.7% Y/Y to 6,110 last month.
• FinMin Arkhom told a SEC seminar that international arrivals are expected to gradually return to the pre-pandemic level of 40mn in five years' time.
• Nov 4 high of THB31.200 provides the initial bullish target, while bears see the 200-DMA at THB30.789 as the nearest support level.
• Thailand's Customs Dept will release trade data at the bottom of the hour. On Friday, focus turns to the weekly update on foreign reserves.