The market bias for the USD to THB exchange rate is currently bearish.
Key drivers include a significant interest rate differential where the Federal Reserve's anticipated rate cuts could weaken the USD, while the Bank of Thailand's positive economic outlook supports the THB. Additionally, as commodity prices, particularly oil, remain stable, their impact on the baht may influence trading dynamics, especially given the recent rise in oil prices.
The near-term trading range for USD to THB is likely to be confined to lower levels compared to the recent average, with fluctuations expected based on the ongoing market conditions.
An upside risk could be stronger-than-expected economic growth in the US, potentially stabilizing the USD. Conversely, a downside risk may arise from increased ASEAN reliance on local currencies, which could pressure the USD further and strengthen the THB.