PATTAYA, Thailand – The Thai baht continued its upward trend on Monday, April 21, opening at 33.27 baht per U.S. dollar, stronger than last week’s close of 33.44. Over the past 24 hours, the baht has traded within the range of 33.24 to 33.46, showing resilience despite limited trading activity late last week due to Good Friday market holidays in Europe and the United States. The baht’s 24-hour range is projected at 33.15–33.35 per dollar.
Currency analysts note that the baht’s strength is being driven by a combination of factors. Chief among them is the persistent weakness of the U.S. dollar, which has been pressured by growing uncertainty over American trade policy. This has led investors to reduce their dollar holdings and shift toward alternative assets, contributing to a broader trend of short-dollar positions in the market.
Adding to the baht’s momentum is the ongoing rally in gold prices, which have edged closer to recent highs. With an 82% one-month correlation between gold prices and the baht, the precious metal’s gains have provided a significant boost to the Thai currency. Foreign demand for Thai government bonds has also supported the baht, as international investors continue to seek returns in emerging markets.
Despite the recent appreciation, financial experts suggest that the baht’s upward momentum may begin to slow in the coming days. One key reason is the anticipated outflow of funds for dividend payments to foreign investors, which could exert downward pressure on the currency. Additionally, market watchers are closely monitoring the direction of China’s yuan and the performance of global equities, especially as companies begin releasing quarterly earnings reports.
Meanwhile, the U.S. dollar may see a modest rebound if upcoming American economic data outperforms expectations. Positive earnings from major tech companies could also provide a tailwind for the greenback, potentially balancing out some of the baht’s recent gains. Nonetheless, the Thai baht remains one of Asia’s stronger performers in recent weeks, bolstered by a confluence of domestic and global market factors.
