Global Inflows During China Reopening Put Baht in a Sweet Spot
- Morgan Stanley recommends trade targeting baht rising to 32
- Funds have bought net $1.5 billion of Thai bonds this month
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The outlook for the Thai baht is looking a lot brighter thanks to surging foreign inflows and supportive technical indicators.
The currency is likely to get a boost from expectations of higher tourist arrivals following China’s reopening and an earlier peak in the mainland’s Covid wave likely around Lunar New Year, Morgan Stanley strategists including Min Dai and Gek Teng Khoo wrote in a note on Monday. The baht has been Asia’s best performer this month, strengthening 3.4% against the dollar.