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Baht’s Outlook Turns Brighter as Tourists Return to Thailand

  • Central bank moving toward rate hikes should support currency
  • Support on technical charts augurs shift in baht’s fortunes
A restaurant in the Chinatown area of Bangkok.

A restaurant in the Chinatown area of Bangkok.

Photographer: Nicolas Axelrod/Bloomberg

The slump that’s taken the baht to its weakest in more than five years may be near an end as Thailand entices back tourists and the central bank edges toward hiking rates.

The currency’s 6% drop versus the dollar this quarter -- its worst three-month performance since Covid-19 devastated sentiment in early 2020 -- has coincided with the country’s biggest current account deficit in nine years and still-record-low borrowing costs.