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 nearby support levels.

Cautious near term as BoT meets

"THB remained under pressure, having weakened to a three-month low amid higher oil prices, weakness in gold and a firmer USD."

"That said, THB decline came despite foreign purchases of Thai equities and bonds, suggesting that portfolio flows have not been the main source of currency weakness."

"Meanwhile, recent comments from BoT Deputy Governor Piti indicated that the central bank sees room to maintain its accommodative policy stance despite higher energy prices, given manageable inflation pressures and still-uneven domestic growth."

"We maintain a slight cautious near-term view on THB. Higher oil prices remain a concern for Thailand’s external balances, while further weakness in gold could add to currency volatility."

"Daily momentum is flat while RSI rose. Near-term consolidation around recent highs likely."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)