The Thai baht (THB) is currently facing mounting pressure as recent developments in the global trade environment have adversely influenced emerging Asian currencies. Analysts have noted that the imposition of a 36% reciprocal tariff by the US on Thai goods, part of a broader trade confrontation, has negatively impacted market sentiment. As fears of a global trade war rise, the baht, along with other regional currencies, has experienced a decline of approximately 2% over the past week.
In terms of recent performance, the THB to USD exchange rate recently reached a 7-day high of 0.030893, which is 1.3% above its 3-month average of 0.030492. This pair has traded within a stable range of 0.029771 to 0.030960, indicating relative strength against the dollar despite the broader market turbulence.
For the THB's performance against the Euro (EUR), the exchange rate stands at 0.026556, closely aligned with its 3-month average, and has exhibited a stable trading range of 0.026099 to 0.027107. In the case of the British pound (GBP), the THB is currently at 0.023023, which is 1.6% above the 3-month average of 0.022657, suggesting a moderate level of strength against the pound.
Additionally, the baht has experienced a notable surge against the Japanese yen (JPY), trading at 4.5954, which is 4.1% above its 3-month average of 4.4165. This pair has shown greater volatility, with a trading range from 4.2307 to 4.5978.
Economists are cautioning that ongoing geopolitical tensions and central banks in the region cutting interest rates to bolster growth could further complicate the outlook for the baht. Businesses and individuals involved in international transactions may wish to closely monitor these developments to mitigate potential currency risks.
