The Thai Baht has been sold aggressively as Thai Stocks crash as concerns mount about the Monarchs health and the security situation.
A tough afternoon for traders in Bangkok as the Stock Exchange of Thailand Index (SETI), fell up to 6.8% this afternoon before rallying to be around 5% lower on the day but around 9% down on the week. Concerns continue to mount about the potentially failing health of King Bhumibol Aduleyadej’s. King’s Health (source: Reuters)
Thailands King is universally revered in his country and is the world’s longest serving Monarch. He is seen as a moderating influence on all sides of Thailand very divided political spectrum. His succession is at this time uncertain, and this has sent jitters through Thailand’s stock and currency markets this week.
Against a strong USD backdrop globally, the sell-off was compounded today with the police increasing security and issuing warnings of a new bomb plot. Security Warning (source: Reuters) This was enough to see the SETI plunge with Tourism related stock unsurprisingly bearing the brunt.
The Thai Baht, already on the back foot this week saw its one-day sell-off accelerate.
In the bigger picture looking at the weekly charts, the USD/THB has accelerated through some key levels topside. Namely trendlines at 35.280 and 35.632. USD/THB traded as high at 35.900 before settling back to 35.700 as the SETI made some of its losses back.
Short term support lies at the 35.50 area with jittery traders and investors set to watch developments closely over the remainder of the week.
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