Baht Falls as Thai Stocks Crash

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.

USDTHBdaily

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.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst - Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley