Forecasts for INR to THB
The exchange rate forecasts for the Indian Rupee (INR) against the Thai Baht (THB) indicate a volatile outlook driven by global economic factors. Recent updates highlight mixed influences on the INR, with concerns over rising energy prices fueling fears of inflation and anticipated interest rate hikes in India. The rupee has weakened against the US dollar amid a broader sell-off of Asian currencies, as market sentiment is affected by U.S. President Donald Trump’s trade policies, particularly the imposition of tariffs which has introduced uncertainty into the currency markets.
Analysts caution that the outlook for the INR remains uncertain, with risks considered "broadly balanced" at current levels. The INR to THB exchange rate has hovered around 0.3911, reflecting stability near its three-month average. However, the rupee has traded within a 5.2% range recently, suggesting potential for future fluctuations amid changing market dynamics.
The Thai Baht (THB) also faces pressures from similar external factors. The imposition of a 36% reciprocal tariff on Thai goods by the US has dampened regional currency optimism, exacerbating risks associated with a potential global trade war. Consequently, the THB has depreciated alongside other Asian currencies, with a recent decline of around 2%. The bearish sentiment on THB stems in part from central banks in the region cutting interest rates to prop up economic growth in the face of these challenges.
Additionally, oil prices, which impact both India's import costs and Thailand's export revenues, are at 90-day lows near USD 61.29—approximately 13.2% below their three-month average of USD 70.61. With crude oil being a significant import for India, any further fluctuations in oil prices may directly influence the INR's stability against the THB, heightening the complexity of the exchange rate outlook.
Overall, currency experts urge caution as both the INR and THB are at the mercy of evolving trade policies, geopolitical tensions, and economic indicators that may lead to increased volatility in the forex market.
