Asia Edition
As growth measures announced by newly appointed PM Srettha Thavisin will bear fruit, Thailand’s currency might rebound shortly. Strategists at Ebury and Societe Generale SA expect the nation’s currency to rally to 34 per dollar by year-end, which is more than 5% stronger than the current level.
Vijay Kannan, a macro strategist at SocGen in Singapore, stated: “A lot of the country-specific risks have receded in recent weeks/months, starting with the resolution to political uncertainty, following that up promptly with passing of measures to improve consumption and tourism. If risk sentiment improves from the context of US interest rates receding a bit, then the baht should rally.”
The Thai baht dropped 2.8% in September, becoming the worst-performing currency in Asia, while the nation’s sovereign bonds have also underperformed.
Source: bnnbloomberg.ca
