USD/THB: Falling to 32.50 by the end of the year – ANZ

The challenges to the baht remain, notwithstanding the falling intensity of the pandemic in Thailand. USD/THB is expected to trade at 32.50 by the end of 2020, according to analysts at ANZ Bank.

Key quotes

“The World Tourism Organisation expects the global tourist flows to fall 60-80% this year, envisaging a tepid recovery only in Q4. Being Asia’s tourism hotspot, Thailand could face disproportionately greater economic pain. In addition, slower world growth is set to weigh on exports, worsening the downside risks to the currency.” 

“Thailand’s economy is headed for a historic growth slump in 2020 and the external sector will be a major contributor to the decline. We expect USD/THB to weaken to 33.0 by Q3, falling to 32.5 by year-end.”