The Thai baht (THB) has faced significant pressure recently, largely influenced by geopolitical tensions and economic shifts. Recently, the US imposed a 36% reciprocal tariff on Thai goods as part of its broader trade strategy, exacerbating the apprehension surrounding emerging Asian currencies. This move follows President Trump's new tariffs on China, which have heightened fears of a global trade war, leading to a decline in risk appetite among investors.
As a consequence, regional currencies, including the THB, have experienced a notable downturn. Over the past week, the baht and the South Korean won both slid approximately 2%. Currently, the THB to USD exchange rate is hovering around 30-day lows at 0.030516, slightly below its three-month average, and has been relatively stable within a 4% trading range, oscillating between 0.029886 and 0.031083.
On the European front, the THB to EUR remains just above its three-month average at 0.026719, trading within a 3.9% range from 0.026099 to 0.027107. In contrast, the THB to GBP has shown more strength, currently at 0.023107, which is 1.6% above its three-month average of 0.022739, with limited movement recorded in a 3.4% range from 0.022355 to 0.023124.
Interestingly, the THB to JPY has reached 90-day highs at 4.6049, reflecting a 3.3% increase over its three-month average of 4.4584 and trading within a 5.6% range from 4.3613 to 4.6049. This fluctuation may suggest that while the baht faces challenges against certain currencies, it has managed to maintain strength against the yen, possibly due to varying economic conditions.
Analysts predict that the outlook for the THB will remain tied to broader trade dynamics and monetary policy responses within the region, especially as central banks respond to growth challenges. Keeping a close watch on these developments will be essential for individuals and businesses engaged in international transactions involving the Thai baht.
