Thai Baht Overvaluation Signals Weakness vs US Dollar: MUFG
MUFG analyst Lloyd Chan warns that the Thai baht's overvaluation is likely to lead to weakness against the US dollar, despite softer US inflation data weakening the greenback.
USDTHB
MUFG's Lloyd Chan has noted that the Thai baht's current overvaluation points to potential weakness against the US dollar. While softer US inflation data has weakened the dollar and lowered expectations of further Federal Reserve rate hikes, the USD/THB pair has still broken above key levels, indicating continued dollar strength.
This divergence suggests that the baht's fundamental overvaluation outweighs the temporary dollar softness, making further THB depreciation likely in the near term.
Source: FXStreet Forex News