Thai Baht Supported By Better Than Expected CPI Data

USD/THB has dropped slightly from session highs, last at 30.167 down 0.08% on the session.

Regional data CPI data showed deflation was slightly less severe than estimated, the YoY November print came in at -0.41% against -0.47% expected. The Core YoY printed 0.18% on the year, against expectations of a 0.20% rise.

• The baht has now advanced for four consecutive days, the currency has lagged other EM FX as the Thai Central Bank said in the minutes from their November meeting they will actively work to dampen strength in THB, and said they will provide further details on FX measures on December 9.
• On November 18, the Thai MPC unanimously voted to maintain the benchmark interest rate at a record low of 0.5% for a fourth straight meeting to preserve the limited policy space and allow them to act at the appropriate and most effective time.
• It said the baht faced short-term challenges from capital inflows to emerging markets due to continued monetary policy easing in many countries as well as risk-on sentiment in the global financial markets.
• Earlier this week Thailand's Bank of Ayudhya projected the baht's value would surge past the 30 handle in 2021, a level not breached since 2013.