The Thai baht (THB) is currently facing downward pressure as recent developments in the global trade landscape have shaken investor sentiment. The imposition of a 36% tariff on Thai goods by the United States marks a significant escalation in trade tensions, contributing to a more pessimistic outlook for emerging Asian currencies. This follows US President Trump's additional tariffs on China, raising concerns that the trade conflict may expand further.
In the last week, both the baht and the South Korean won have experienced declines of approximately 2%, reflecting the broader impact of rising fears regarding a global trade war. The overall climate has led to an unwinding of recent gains seen in Asian currencies, especially as several regional central banks have opted to cut interest rates in a bid to bolster economic growth.
In terms of specific exchange rates, the THB is currently trading at 0.030979 against the US dollar, which is 1.0% above its three-month average of 0.030673. This pair has remained relatively stable, oscillating within a tight 4.0% range from 0.029886 to 0.031083.
For the euro, the THB is trading at 0.026534, slightly below its three-month average, with fluctuations contained within a 3.9% range from 0.026099 to 0.027107. The exchange rate against the British pound shows the baht at 0.023034, reflecting a gain of 1.2% over its average of 0.022765, within a range of 4.4% from 0.022355 to 0.023343. The THB has also appreciated against the Japanese yen, currently at 4.5536, which stands 1.9% above its average of 4.4704 and has traded within a 5.5% range from 4.3613 to 4.6032.
Analysts suggest that businesses and individuals involved in international transactions should remain vigilant about the evolving trade dynamics, as ongoing developments may continue to influence the value of the THB in the near term.
