The Thai baht (THB) has recently shown notable strength against several major currencies, reaching 30-day highs of approximately 0.031031 against the USD and 0.026761 against the EUR. Analysts have noted that the THB has been trading within a stable 3.9% range against the USD, while showing a similar stability against the EUR, with only a 3.1% fluctuation. Furthermore, the baht has reached 90-day peaks against the GBP at 0.023589 and the JPY at 4.7785, both significantly above their respective three-month averages.
However, this appreciation of the baht has raised concerns among Thai authorities. The Deputy Central Bank Governor, Piti Disyatat, highlighted the implications of prolonged US-China trade tensions, warning that they could significantly impact Thailand's economic growth, with projections indicating a slowdown to 2.2% in 2025 and further to 1.6% in 2026. This sentiment has led to strategic measures from both the government and the Bank of Thailand, aiming to mitigate the baht's rapid appreciation, which they fear could adversely affect essential sectors such as exports and tourism.
The Bank of Thailand has actively intervened in the foreign exchange market to prevent the currency from experiencing excessive fluctuations. Market experts recognize that continued moves to stabilize the baht will be critical as Thailand engages in negotiations with the United States on trade rules, focusing on essential elements such as regional value content and rules of origin.
Investors and businesses engaging in international transactions should remain attentive to these developments, particularly given the potential volatility stemming from external economic pressures and domestic policy adjustments aimed at maintaining a balanced currency value.
