Thai Baht Lead Strongest Gain Among Emerging Market Currencies
Slow yet gradual revival of the tourism industry and central bank's policy support to further add to the strength of the Thai baht
The Thai baht gained against most Asia’s emerging currencies on Monday, hitting the highest in two weeks ahead of Bank of Thailand’s (BoT) policy meeting on Wednesday.
The country opened earlier this month to tourists however questions remains if the number of tourist arrivals this year unlikely to hit a quarter of pre-pandemic level amid complex travelling requirements globally.
Although better than expected U.S. payroll number added positive sentiment in South Asian markets, however the U.S. inflation data remains a key focus for markets in this region.
According to Retuers Poll, the BoT is expected to keep interest rate at record low of 0.50% on Wednesday’s meeting to support the battered economy. The poll also expects the record low rate is to be maintained at least until 2023, which is when some prominent research houses believes tourism would be back at pre-pandemic level.
The baht is currently trading at THB 33.050/USD and earlier gained up to 0.80%, posting the strongest gain since October 26.
