Thai Baht Continues To Rise Amid New Stimulus Package Announcement As PM Acquitted

THB: USD/THB is slightly lower on the session, but much like its EM counterparts a slight bounce in DXY has bought the pair just off its lows at 30.212

• Yesterday officials announced plans for THB 43.5bn ($1.44bn) of additional stimulus. The package will still need cabinet approval. It will be financed by the government's planned THB 1tn borrowing aimed at mitigating the impact of the pandemic. Official government figures estimate the economy will shrink by 6% in 2020.
• Late in November the Bank of Thailand announced additional measures to tease the THB rally. They relaxed regulations on capital outflows and eased rules to spur overseas investment for individuals and companies. This comes of the back of exporters' concerns over the rapid rate of appreciation in THB following foreign investors turned net buyers of bonds and stocks.
• The baht is some 9% stronger than its weakest levels hit in March, and has strengthened 4.7% against the US dollar in Q4.
• Thailand's constitutional court acquitted Prime Minister Prayuth Chan-ocha of ethical wrongdoing on Wednesday. The ruling comes as Prayuth has been dealing with a persistent pro-democracy movement that has been demanding that he and his government step down, claiming that they came to power illegitimately.