Thai Baht's External Cushion Less Generous – UOB

UOB's Global Economics & Markets Research highlights that Thailand's external buffers, while still credible, are becoming less generous. The current account has shifted to deficits in April and May, driven by robust imports of energy and capital goods even as exports remain resilient.

These dynamics reduce the cushion that Thailand's external position typically provides to the baht. The deficits reflect domestic demand for investment goods and energy, weighing on the currency's traditional support factors.