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USD/THB Tracking Lower But Within Recent Ranges, New PM Aims To Boost Tourism Revenue

THB

USD/THB is tracking lower in the first part of dealing today, last near 35.17, around 0.30% firmer in baht terms for the session so far. This keeps us within recent ranges, with the 20-day EMA at 35.025 a potential support point on the downside.

  • The baht is benefiting from broader USD softness, with the BBDXY tracking ~0.10% lower at this stage. Onshore equities are also tracking higher in early dealings (+0.4%), with the 200-day EMA not too far at ~1570, versus opening levels around 1566.
  • The new cabinet in Thailand is taking shape, with PM Srettha set to be Finance Minister, although other details are not forthcoming at this stage (see this link).
  • An end to the political impasse may be aiding equity sentiment, although other investor flows are still absent, with -$43.4mn in net outflows yesterday (now -$365.8mn month to date).
  • On the tourism front, the new PM has stated the aim is to boost flight capacity by 20% ahead of peak season (see this link). Srettha is also targeting 3.3t baht in tourism revenue next year, up from a projected 2.38t baht this year.
  • Arrivals year-to-date are 17.5 million, which when annualised is below the run rate required to the projected 28-30 million target this year, but the authorities will be aiming for an accelerating trend into year end.

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