The USD to THB exchange rate outlook appears to be bearish in the near term.
Key drivers include the expected interest rate cuts from the Federal Reserve, which may weaken the USD. Additionally, improving global economic growth and rising commodity prices could support the THB. Inflation pressures in Thailand should also favor its currency as analysts anticipate a current account surplus contributing to a stronger baht.
The near-term trading range for USD to THB is likely to remain within a stable band, showing limited volatility, particularly as the USD is currently trading about 1.9% below its 3-month average.
Upside risks include unexpected increases in commodity prices that might boost the USD. Conversely, any signs of deteriorating economic conditions in Thailand could lead to a weaker THB. The evolving monetary policies and international sentiment will be crucial in shaping the dynamics of this exchange rate.