USD/THB Just Off Multi Month Highs, Baht Remains Weakest Performer In EM Asia FX

USD/THB sits below earlier highs, last close to 36.13. Earlier we got to 36.18, which was fresh highs back to early Nov last year (Nov 1 high was 36.335). The pair is comfortably above all key EMAs, the rising 20-day last near 35.65.

• Baht remains an underperformer within the EM Asia FX space, off 5.5% year to date, with MYR the next worst at --3.9%.
• Local asset trends in terms of sideways equities price action are not helping THB. Portfolio flows are negative this week for equities (-$78.5mn) and just positive for Feb to date. Bond outflows have been more prominent (-$551.8mn). A
• Lack of confidence in the economic outlook will be a factor. Note that Q4 GDP prints early next week and is likely to be eyed closely by the BoT for risks around the policy outlook.
• Note that PM Srettha chairs a meeting on the digital wallet later today at 4pm local time.
• At the margin, lower gold prices will also likely be weighing at the margin. Directional correlations between baht and gold remains firm.