Vishnu Varathan is the head of strategy and economics at Mizuho Bank. He says that the baht will remain vulnerable to fiscal headwinds. This is despite recent approvals by Thailand's government for THB194billion in new borrowings. Varathan says that the increased debt and concerns over the fiscal deficit have made the baht more sensitive to new debt issues. Varathan believes this is why the baht has not benefited from the Bank of Thailand’s surprise rate increase on Wednesday, and remains the worst performing currency in Asia. He is 'constructive,' but he also says that the fiscal burden on the baht in the near-term cannot be ignored. (EMAIL).