Thailand’s currency wilts as Covid wreaks havoc on tourism

Thailand updates

Sign up to myFT Daily Digest to be the first to know about Thailand news.

Thailand’s baht has gone from being one of Asia’s strongest currencies before the pandemic to one of its worst performers this year as the coronavirus crisis ravages its crucial tourism sector.

The Thai currency is down more than 9 per cent against the dollar since the end of 2020, placing it among this year’s weakest performers globally alongside peers such as the Turkish lira and Peruvian sol.

The loss of tourism dollars on which Thailand’s economy relies, combined with a wave of Covid-19 infections that has quashed hopes of a quick economic recovery, have turned formerly bullish buyers of its assets into bears. 

“The baht is uniquely exposed to the collapse in cross-border services, and obviously tourism is the big one,” said Mark Baker, investment director with…