The Thai baht weakened to its lowest level in 15 months on Thursday, dragged down by a stronger US dollar and fresh jitters over Middle East tensions, according to Kasikorn Research Center.
The currency slid to 33.848 baht per US dollar during trading, its weakest point since April last year, before settling at around 33.80 baht per dollar by the close. That compared with Wednesday’s close of 33.81 baht per dollar.
The baht had briefly recovered earlier in the session but lost ground again as Asian currencies broadly weakened, including the Japanese yen. The dollar firmed up as investors turned their attention to geopolitical risk, particularly developments around the Red Sea and the Strait of Hormuz. Worries that trade routes and energy supplies could be disrupted pushed demand toward safe-haven assets, boosting the dollar while weighing on regional currencies such as the baht.
Foreign investors sent mixed signals in the Thai market on Thursday. They bought 1.891 billion baht worth of Thai stocks, pointing to some lingering appetite for equities. At the same time, they offloaded 5.715 billion baht worth of Thai bonds, a sign of caution in fixed income.
Kasikorn Research Center expects the baht to trade between 33.75 and 33.90 per US dollar on Friday. Analysts said Thailand’s June export figures, the situation in the Middle East, foreign fund flows, and the movement of other regional currencies would all be worth watching in the days ahead, as geopolitical tension and shifting dollar demand continue to drive the currency’s direction.
Thai baht 15 month low
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