The INR to THB exchange rate currently shows a bearish bias.
Key drivers include:
- Interest rate differentials present a challenge for the INR against the THB, as the Reserve Bank of India maintains a cautious stance amid economic pressures.
- The Thai baht could benefit from a current account surplus and expected capital inflows, strengthening it further.
- Concerns over India’s economic growth persist, while Thailand's slower growth could hinder the baht's full potential.
The near-term trading range for the INR to THB is expected to fluctuate but may remain tight due to current volatility.
An upside risk is the potential for improvements in US-India trade relations, which might support the INR. Conversely, a downside risk could arise from ongoing foreign portfolio outflows from India, negatively impacting the INR's strength against the baht. Recent price data indicates the INR is currently 2.8% weaker than its three-month average, indicating notable market volatility.