Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted that USD/THB could still lose some ground in the near term.

Key Quotes

“We highlighted last week that ‘there is scope for the weakness in USD/THB to extend’. We added, ‘in view of the oversold conditions, the next major support at 32.18 is not expected to come into the picture’. The anticipated weakness exceeded our expectations as USD/THB plummeted to a low of 32.09 on Thursday (17 Feb).”

“Further USD/THB weakness is not ruled out but conditions remain deeply oversold and a sustained decline below 31.95 appears unlikely (next support is at 31.62). On the upside, a breach of 32.32 would indicate that the current USD/THB weakness has stabilized.”