A Time Of Weakness

In the immediate term, THB41.30/US$ support is key. A drop below that level could presage a decline to THB41.80/US$ or THB42.00/US$. Concerns about economic growth, high fuel prices, a hefty trade deficit, and violence in the south are all depressing the currency. However, much of the negative news has now been priced in, and the baht was supported by news that the trade deficit recovered to US$85mn in July, from US$1.88bn in June, as imports slowed sharply. Resistance exists at THB40.80-40.90/US$, a break above which could herald gains to

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