Dollar to devalue against Baht amid US heavy tariffs on steel, aluminum

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Bangkok – The Thai currency will continue to appreciate against the US dollar following the Trump administration’s move to impose stiff tariffs on steel and aluminum imports, says the Kasikorn Research Center (KResearch).

KResearch Managing Director, Chao Kengchon said that the center believes that the volatility of the US dollar will persist after US President Donald Trump signed executive orders imposing global tariffs of 25% on steel and 10% on aluminum. President Trump cited an unfair foreign trade advantage as the main reason.

Chao said the move is highly likely to invite retaliatory measures from foreign countries including the European Union and China.

Measures taken by the rest of the world, according to the center, will cause a devaluation of the US currency, hence a stronger baht for the foreseeable future.

Overall, he said the US economy is performing well, with the unemployment rate easing down to 4.7% in February compared with 4.8% in January, 2018.

In the meantime, the Thai Ministry of Commerce has made known it will keep a close watch on the US’s economic policies and their impact.