PATTAYA, Thailand – The Thai baht weakened to its lowest level in three weeks, touching 32.62 per US dollar in morning trading (April 29), as regional currencies in Asia broadly depreciated amid heightened geopolitical concerns and policy uncertainty.
According to the Kasikorn Research Center, the baht continued to weaken toward the 32.60 level, compared with the previous close of 32.51. The movement aligned with a softer Chinese yuan and most Asian currencies, while the US dollar strengthened on safe-haven demand.
Market sentiment has been pressured by ongoing uncertainty over Middle East tensions and the lack of clarity surrounding the second round of US–Iran negotiations. Investors remain cautious, supporting demand for the dollar.
Domestically, the baht also lacked positive support as markets awaited the outcome of the Bank of Thailand’s Monetary Policy Committee (MPC) meeting later in the day. Analysts also noted additional dollar demand from dividend payments, adding further pressure on the local currency.
The intraday trading range for the baht is estimated between 32.40 and 32.70 per dollar. Key factors to watch include the MPC decision, US Federal Reserve policy signals, developments in the Middle East, global oil prices, foreign fund flows, and upcoming US economic data.
Meanwhile, Krungthai GLOBAL MARKETS strategist Poon Panichpibool said the baht showed limited movement overall, while global markets remained sensitive to uncertainty in artificial intelligence-related business outlooks.
Gold prices were relatively stable around $4,600 per ounce, though still influenced by geopolitical tensions. Attention is now turning to the US Federal Reserve, which is widely expected to hold interest rates at 3.50%–3.75%, and Thailand’s MPC, which is also expected to keep its policy rate unchanged at 1.00% to support economic stability.
Analysts warn that continued uncertainty in the Middle East could lead to higher-than-normal volatility in currency and financial markets, requiring investors to closely monitor developments and manage risk through scenario analysis and hedging strategies. (TNA)
