The Canadian dollar (CAD) has recently faced challenges, significantly impacted by declining oil prices and disappointing economic data. As a commodity-linked currency, the CAD tends to weaken when oil prices drop, and currently, oil is trading at 90-day lows near $65.50, approximately 5.1% below its 3-month average of $69.04. Experts note that Canada, as one of the world's largest oil exporters, relies heavily on healthy oil revenues, which have been stifled by the recent downturn.
In the past month, the CAD showed some volatility, experiencing a notable rebound against the USD fueled by dovish comments from U.S. Federal Reserve officials, with one report indicating a significant rally of 0.7% on August 22, 2025. However, subsequent economic data, including higher unemployment rates expected from the recent jobs report and a decrease in annual inflation to 1.7% in July, suggests mounting pressure on the CAD, as analysts anticipate a possible interest rate cut by the Bank of Canada.
In the context of the CAD to Thai baht (THB) exchange rate, the CAD is currently nearing 90-day lows at 23.16 THB, 2.0% below its 3-month average of 23.64. The currency pair has remained relatively stable within a 3.5% range from 23.16 to 23.96. Currency experts suggest that this environment could continue, particularly if the Canadian economy fails to recover amidst falling oil prices and troubling domestic indicators.
Meanwhile, the THB has also been underpressure due to its economic environment, with the Bank of Thailand recently cutting interest rates to the lowest level in over two years to support growth amid a weaker economy impacted by declining tourism and U.S. tariffs. As forecasts for Thailand's economic growth have been downgraded, this adds another layer of complexity for the baht.
Given recent trends, the upcoming weeks will be crucial for both currencies. If the CAD continues to struggle with oil price declines and poor economic indicators while the THB faces its own growth challenges, the exchange rate is likely to remain volatile. Currency analysts highlight the importance of closely monitoring both countries' economic data and global oil prices, as these factors will significantly influence the CAD/THB outlook moving forward.
