Thai baht surges as tourism curbs ease

Analysts are ramping up bullish bets on the currency
Newsfeed13 Oct 2021
    Photo credit: AFP Photo

    Thailand’s baht rallied the most since August as an easing of travel requirements for vaccinated visitors brightened the outlook for the tourist-reliant economy.

    The baht jumped as much as 1.4% to 33.426, the biggest gain since 24 August. Visitors from 10 low risk countries will not be required to undergo isolation on arrival from 1 November, Prime Minister Prayuth Chan-Ocha said Monday (11 October). Thai stocks were poised for their highest close since 6 September.

    Analysts are ramping up bullish bets on the baht after it fell to the bottom of Asia’s currency rankings with a loss of nearly 11% this year.

    Thailand is pushing ahead with a “living with Covid-19” strategy after foreign tourist arrivals plunged to 73,932 in the first eight months of this year, from almost 40m visitors who generated more than USD60b in revenue in 2019.

    The baht is forecast to rally to 32.6 per dollar by year end, according to a Bloomberg survey, a gain of more than 2% from current levels. In comparison, the Philippine peso and Malaysian ringgit are forecast to rise 1% and 0.5%, respectively, while the rupiah is seen declining 0.6% from current levels. – Bloomberg News.

    On Tuesday, the US Dollar Index added 0.21% to 94.516, the euro slipped 0.19% to USD1.1530, the pound fell 0.05% to USD1.3588, and the yen weakened 0.26% to 113.61 per dollar.

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