Thai baht takes a hit from tourism wipeout

Thai bhat

BANGKOK: A perfect storm is engulfing Thailand’s baht and the one group of people who can save it are stuck in lockdown, thousands of kilometers from the arrival lounges of Bangkok, Phuket and Chiang Mai.

A current-account deficit, resurgent US dollar and the seasonal repatriation of dividends by Japanese investors have all helped made the baht the worst-performing currency for Asia’s emerging markets for March. But it’s the bleak outlook for tourism that’s underlying the weakness, sending the US dollar-baht to nearly a six-month high and ever closer to a test of its four-year downtrend.