Baht, Philippine peso extend falls, see stocks surge
The Thai baht approached nine-month lows on Tuesday and the Philippine peso notched its sixth straight session of losses, weighed down by the U.S. Fed's recent hawkish turn, though equity markets across Asia got a lift from Wall Street's robust close.
The baht fell to the lowest since Sept. 30, 2020, while the peso stood just off 2-1/2-month lows, having lost 2.2% so far this month. Like other emerging assets, both have come under pressure after the U.S. Federal Reserve signalled it could raise interest rates in 2023.
Thailand is also pressured by COVID-19 curbs, which have contained the country's coronavirus outbreaks but hit revenue from its key tourism sector.
"There is some hope that perhaps tourism can come back in the fourth quarter this year if there is progress in vaccine rollouts. But as of now, that is still only a hope," said Sim Moh Siong, FX strategist at Bank of Singapore.
The Bank of Thailand is likely to cut its economic growth outlook at its policy meeting on Wednesday, while keeping interest rates at a record low.
Reference: Reuters
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