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USD/THB Hits Fresh Highs, BoT Ready To Curb Excessive Volatility

THB

USD/THB has hit fresh highs today, last at 37.20. We closed yesterday at 37.04, but the bias remains in the pair to test the upside. Broader USD trends remain firm, while local equities continue to track lower. The SET index is back to early 2021 lows, although found some support today at the open near 1430. Offshore investors flows were large yesterday at -$119.7mn.

  • The main macro focus today has been comments from BoT Governor Sethaput Suthiwartnarueput (see this BBG link for more details). On FX, the governor noted baht volatility has risen, but the central bank stands ready to curb excessive moves.
  • The economic recovery is continuing, with consumption firmer but investment is lagging. Yesterday's shooting incident in a Bangkok mall will have to be watched in terms of impact on tourism related flows the Governor noted.
  • Tomorrow the data calendar has September CPI in focus. The market looks for headline CPI at 0.60% y/y (prior 0.88%), while core is forecast at 0.70% y/y (prior (0.79%).

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