The Laotian kip has shown only a muted reaction to the ongoing pandemic outbreak. Its year-to-date fall against the USD has been 0.6%, reflecting its less exposed external position via the trade and tourism channels, according to strategists at ANZ Research. USD/LAK is sitting at 8,691.37.
Key quotes
“The expectations of a sharp economic slowdown in major trading partners like Thailand will eventually weigh on Lao’s export performance, and hence its currency.”
“The economic slowdown in China also poses a risk to FDI inflows.”
“We expect the kip to remain on a gradual weakening path, reaching 9,025 by the end of the year.”
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