The HKD to THB market currently exhibits a range-bound bias. Key drivers include the stable interest rates maintained by the Hong Kong Monetary Authority, while the Bank of Thailand anticipates a strengthening baht due to capital inflows and a robust current account surplus. Furthermore, the projected modest GDP growth in Thailand adds a layer of complexity given the potential effects of a strong baht on exports.
In the near term, the HKD is expected to trade within a relatively stable range, reflecting minor fluctuations influenced by global economic conditions. Recent price data shows the HKD to THB traded at 4.0428, which is below its three-month average, indicating potential undercurrents affecting its value.
An upside risk could stem from a significant decline in the US dollar, which may bolster the HKD. Conversely, a resurgence in oil prices could create downward pressure on the baht, affecting the exchange rate negatively.