MUFG’s Michael Wan highlights that local political developments are supporting the Thai Baht (THB). A stronger-than-expected performance by the Bhumjaithai Party in Thailand’s recent elections has improved perceptions of political stability. MUFG views the recent outperformance of the Thai Baht as justified in the near term, alongside broader regional support from a weaker US Dollar.

Election outcome backs Baht strength

"Local factors were also key, with a better than expected result by the Bhumjaithai Party in the recent Thailand Elections, capturing up to 194 seats out of 500."

"Building a coalition is still needed, but the key change at the margin is that there is relative political stability in Thailand, and the outperformance of the Thai baht makes sense to our minds in the near-term."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)