So foreign investors have been selling Thailand for the past 12 months, heavily, who’s picking up the slack? It’s quite obvious as seen per the below.
Now why the f is the THB still strong some may ask? A few factors, but look at the second group of charts. The bond market is attractive in Thailand. Nuff said and the positive aspect of the thai fixed income is that foreign investors are a massive portion like in Indonesia, Philippines and Malaysia (where they range from 30-50% of the fixed income market, whereas in Thailand it’s single digit %’s)
A random thought, if this is where the market is with so much foreign selling, what happens when the foreign fund flow reverses and they become buyers again?