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USD/THB Can't Sustain 35.00 Downside Break, PM Looks At Easier Travel Rules For China/India

THB

USD/THB is above earlier lows just under 35.00, the pair last near 35.09. We remain comfortably within recent ranges, with baht bulls targeting a sustained break of the 20-day EMA, which comes in at 35.03, while on the topside, August highs sit back near 35.60.

  • Initial baht gains today were likely fueled by USD weakness post the onshore Tuesday close, but with USD indices regaining some ground today (BBDXY +0.15%), there has been little follow through to earlier selling pressures in USD/THB.
  • The local data calendar remains quiet until tomorrow when July IP and BoP/trade data prints.
  • On the tourism front, new PM Srettha is reportedly looking at easing rules (such as cutting fees and extending stay limits) for travelers from China and India in order to boost the outlook ahead of the Q4 peak tourism season (see this link for more details).
  • In July travelers from China to tourist destination Phuket were reportedly 30% of pre-Covid levels, versus 70% for other travelers.

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