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DOLLAR-THB : The Bank of Thailand points to..........>

DOLLAR-THB
DOLLAR-THB : The Bank of Thailand points to regional outperformance for THB over
the past couple of weeks, as its notes that it is ready to mull further steps to
limit THB strength, given worry that such a move could be out of line with
economic fundamentals, per BBG.
- The BoT also notes that it will scrutinise gold trading transactions, with the
move in gold potentially contributing to THB strength.
- On this note it is worth remembering that Thailand is a major gold trading
hub. When gold prices rally local Thai gold dealers tend to take profit on long
gold positions & sell USD/THB to transfer the proceeds back into local currency.
- The BoT has also suggested that a "better" COVID-19 outlook may lure short
term flows into THB.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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