Thailand’s baht languished at three-year lows on Friday as an unrelenting coronavirus wave dented recovery hopes, while India’s equities and currency were muted after interest rates were held steady at record lows as expected.
The baht was down 0.5 percent, still the worst performer among Southeast Asian currencies, and has weakened more than 10 percent so far this year.
Thailand reported 21,379 COVID-19 cases and 191 deaths on Friday, both new records, in a week that also saw monthly consumer confidence dropping to a record low and the Bank of Thailand slashing its full-year growth outlook. (
“We believe that if further downside risks to growth materialize, such as a continued spread of the Delta variant and the extension of the current restrictions into late September/October, Thailand may witness a second consecutive annual growth contraction in 2021,” HSBC said in a note to clients.
Meanwhile, the Reserve Bank of India kept benchmark rates unchanged as expected but raised its inflation forecast, promising to help normalise liquidity conditions.
“It is amply evident that RBI is comfortable with the headline inflation hovering around 6.0 percent,” said Suman Chowdhury, chief analytical officer at Acuité Ratings & Research.
India’s NSE Nifty 50 index was slightly lower, while the Indian rupee was largely flat.
Indonesia’s rupiah weakened slightly, but was on track for its best week since the one ended June 11 as the country exited recession and saw signs of the current coronavirus wave having peaked.
