Thai Baht: Overvaluation points to weakness against US Dollar - MUFG
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, supporting a weaker Baht outlook.
Baht under pressure despite softer Dollar
"Despite the softer dollar backdrop, USD/THB has broken above the 33.50 level, and we continue to see scope for further baht weakness."
"Thailand’s low carry profile remains a headwind, while the recent rebound in oil prices is likely to worsen the country’s terms of trade."
"Growth risks have also increased amid the re-escalation of Middle East tensions, which could encourage the Bank of Thailand to maintain an accommodative policy stance to support the economy."
"In addition, our valuation metrics suggest that the baht remains modestly overvalued."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Samsung Electronics' 2nm yield approaches 60%, aiming at TSMC to compete for tech giants' orders
The yield rate of Samsung Electronics' foundry division's 2nm process has increased to nearly 60%, a significant improvement from around 30% in mid-2023. After stabilizing the yield, Samsung has shifted its engineering focus to power consumption and heat dissipation optimization, and is accelerating the development of the more powerful second-generation process, SF2P, aiming for mass production within the year. Strategically, Samsung plans to supply 2nm chips to Tesla next year, using this as a stepping stone to enter the large-scale tech client market.
From connecting users to hosting computing power, Philippine telecom giant Globe bets on AI data centers! Targeting the next billion-dollar business.
Globe Telecom Inc. plans to invest at least $1 billion by 2027 to expand its data business. The company regards its data center business as the next billion-dollar venture, with the rapid development of artificial intelligence being a key driving factor behind this goal.
Quantum Computing Reaches Historic Turning Point: Moving Beyond "Physical Experiments," Supply Chain and Manufacturing Become Key to Success
After attending the Quantum World Congress, Jefferies issued a major evaluation: the industry's core challenge has shifted from "creating good qubits" to "building truly usable computers." The source of competitive advantage has fully moved from physics innovation to system engineering and manufacturing barriers. The U.S. government has elevated its role from a funding provider to a rule-maker, with federal funding now linked to performance and the NQI Act about to be implemented. Whoever first achieves repeatable manufacturing and supply chain resilience will earn the ticket to compete in commercializing this technology.
Crypto prices
More
