Thai Baht: Overvaluation points to weakness against US Dollar

Thai Baht: Overvaluation points to weakness against US Dollar

MUFG’s Lloyd Chan notes that softer US inflation data has weakened the Dollar and lowered Fed rate hike expectations, but USD/THB has still broken above 33.50. He highlights Thailand’s low carry, deteriorating terms of trade from higher Oil prices, increased growth risks from Middle East tensions, and valuation metrics indicating the Baht remains modestly overvalued, […]