USD/THB Back Below 37.00 But Limited Follow Through
USD/THB got to 36.835 not long after the open, but didn't have much follow through. We last tracked just above 36.91, still around 0.50% stronger in baht terms versus yesterday's close. This leaves baht the strongest performer in EM Asia to date, but largely reflective of USD weakness post yesterday's close.
- These moves leave us well within recent ranges for the pair. Earlier October lows sit near 36.70, while highs near 37.24 remain intact.
- Domestic focus remains on the cash handout program, with Pheu Thai launching a defense of the program (see this BBG link for more details).
- Local equities are trying to find a base around the 1430 level, but upside has proved limited so far. Yesterday saw $80mn of offshore net equity inflows. Bond outflows of -$53.6mn provided some offset the other way.