THB Loses Ground, Worst Performer In EM Asia Week, Equity Outflows Continue

USD/THB has spiked higher in recent dealings, the pair last at 35.45. This is fresh highs back to mid November, from last week. Baht is down around 0.50% for the session so far, and -1% for the past week, leaving it the worst performer in the EM Asia FX space over this period.

• For USD/THB, recent lows rest near 35.00, while we have pushed above the 200-day EMA (35.29), while the 20-day and 100-day EMAs sit further north close to 35.55/60.
• Recent weakness in Thailand equities hasn't helped THB sentiment, while offshore investors have remained net sellers of local shares this week, -$145mn in net outflow so far. The Government is pushing ahead with its digital wallet plan, while the BoT has stated the country needs to preserve monetary and fiscal space.
• Gold has also faltered above the $2000 level, with the precious metal and THB generally enjoying a positive correlation in the past 12 months.
• The Thailand Tourism Authority holds briefing soon on the China tourism backdrop (BBG). Later on, we get weekly FX reserve figures.
• Next week the BoT decision is the main focus, with no change expected at this stage, but some sell-side names are seeing risks of easing as we progress into 2024 (see this BBG link).