Thai Baht: Double-top risk against US Dollar with BoT in focus – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note that Thai Baht (THB) has weakened to a three‑month low against the Dollar, pressured by higher Oil prices, Gold weakness and a firmer USD. They maintain a slightly cautious near‑term view, with Wednesday’s Bank of Thailand (BoT) meeting and developments in Gold and Oil seen as key. Technicals highlight a possible double‑top around recent highs and…
Thai Baht (THB) has hit a three-month low against the US Dollar amid rising oil prices, weakening gold and a stronger dollar. OCBC analysts Sim Moh Siong and Christopher Wong express slight caution for the near future, highlighting the upcoming Bank of Thailand (BoT) meeting and the impact of gold and oil developments. Technical analysis suggests a possible double-top pattern near recent highs and nearby support levels.
Despite foreign purchases of Thai equities and bonds, the THB decline persists, indicating that currency weakness isn't solely driven by portfolio flows. BoT Deputy Governor Piti's recent remarks suggest the central bank is comfortable with its accommodative policy stance, even with higher energy prices, manageable inflation, and uneven domestic growth.
The THB faces challenges due to higher oil prices, which could strain Thailand's external balances, and further weakness in gold, adding to currency volatility. While daily momentum is flat, RSI has risen, indicating a potential near-term consolidation around recent highs.
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