The Thai Baht Rises Alongside Stocks Amid Growing Confidence
Reaching their highest levels in eight months, the Baht and Thai stocks are showing signs of recovery amid political instability that plagued the country, that is until the military stepped in some months ago.
The currency has gained particular momentum in recent days, climbing 1% on Friday and up 2.3% overall since the military took power in May. Months of protests shook the country and the effects took their toll on the country’s economy. Now reinvigorated by stability, Thai stocks are also seeing a sharp rise.
Exports went on to total 7.3% growth since June of last year, according to Army chief Prayuth Chan-ocha in a statement he delivered last week.
An estimated $2 billion were said to have been bought during Monday’s rally, breaking 32 per USD.
Foreign investors purchased an estimated $512 million in Thai stocks in July.
While the marked improvement in Thailand’s economy is a sure sign of progress, speculators are reticent to believe the currency has much further to go.
Lack of future economic plans is keeping confidence at bay, in addition to hindering any significant developments in the near future.
The Baht is forecasted to weaken in the mid-term and speculators are waiting for an opportune time to recommend betting against the currency.