Baht Advances to the Strongest since 2013 at 30.228/USD, Gaining 7% YTD!

Thai baht in the morning of Friday, October 25 2019, has strengthened to the strongest since 2013, rose 0.2% to 30.228/USD.

The baht gains 7.6% this year, which is the most outstanding performance in the emerging-market peers except for the Russian ruble.

The gains have defied the efforts of Thai authorities, who fear the baht’s strength is becoming a drag on the $505 billion economy. Finance Minister Uttama Savanayana said on October 9 that the central bank should “take care” of the currency.

 

In September 2019, Thai exports declined by 1.39% YoY, higher than the expectation from the economist at 0.6% after a 4% drop in the previous month. The plummet reflected the decrease shipments of automatic data processing machines and parts; polymers of ethylene and propylene; chemical products; and refine fuels, while the drop in tech-related items is likely linked to the global slump in the tech cycle.

Moreover, imports, dropped 4.2% YoY in September, up from the steep 14.6% drop in August.