PATTAYA, Thailand – The Thai baht weakened to its lowest level in more than a week before partially recovering, as foreign fund outflows and a stronger US dollar weighed on regional currencies, according to Kasikorn Research Center. The baht touched 32.68 per US dollar during trading before closing the domestic market at 32.58, compared with 32.33 on the previous day. Analysts said the depreciation was in line with net foreign selling in Thai equities and bonds, totaling 729 million baht and 2.949 billion baht respectively, as well as broader weakness across Asian currencies and a decline in global gold prices.
The US dollar remained supported by expectations that the Federal Reserve may keep interest rates elevated for a longer period, as policymakers assess the economic impact of ongoing geopolitical tensions in the Middle East. For the week ahead, Kasikorn Research projects the baht will trade within a range of 32.10 to 32.80 per US dollar, with key factors including Thailand’s first-quarter GDP data, foreign capital flows, US economic indicators, Fed commentary, and developments in US-China relations following recent leadership talks.
Markets are also watching a series of global data releases, including US housing market figures, construction starts, preliminary May PMI readings, Fed meeting minutes, and weekly jobless claims. Additional attention is on China’s loan prime rate decisions, as well as inflation data from the Eurozone, UK, and Japan. Overall, analysts expect continued volatility in currency markets as investors react to shifting monetary policy expectations and global economic uncertainty.
