PATTAYA, Thailand – As the Thai Baht continues to weaken, many experts in the foreign exchange market are closely monitoring its potential impacts. The Baht is currently trading in the range of 34.00 to 34.50 Baht per US Dollar, with predictions of its fluctuation largely following the movement of other major currencies. This drop comes amid growing concerns over the effects of tariffs imposed by the US, and several countries, including China and Europe, have already signaled that they will retaliate with their own measures.
According to the Financial Market Group of Siam Commercial Bank, the Baht is expected to remain between 34.00 and 34.25 Baht per US Dollar, with a slight rebound in value driven by the depreciation of the US Dollar index. The market is worried about the impact these tariffs could have on the US economy, which could prompt the Federal Reserve to lower interest rates. Meanwhile, US Treasury yields have dropped.
The weakening Baht, although a potential burden for some sectors, could bring relief to Pattaya, which is facing challenges during the low tourist season. With the Baht losing strength, Thailand becomes more attractive to international visitors, particularly those from countries with stronger currencies. As a result, Pattaya, a major tourist destination, might see an increase in foreign visitors who take advantage of the favorable exchange rate, boosting tourism revenue.
Pattaya’s economy, which heavily relies on tourism, could see some stability if more tourists take advantage of the reduced cost of living in Thailand. This scenario could also benefit businesses in the hospitality and retail sectors, as tourists from countries like the US, Europe, and China find the prices more favorable during their stay. The government’s ongoing focus on improving the city’s infrastructure and tourism appeal might further help it ride out the low season despite global economic uncertainties.
Moreover, foreign currency traders are closely following any retaliatory measures from countries like China and the European Union in response to the US tariffs, which could impact exchange rates further. With the Baht weakening, many hope that Pattaya’s tourism sector can hold on through the low season by capitalizing on the favorable exchange rate for international visitors.
However, it is essential to note that there are concerns regarding the potential escalation of trade tensions, especially with tariffs starting to take effect on April 9. The outcome of these trade conflicts could have significant implications for Thailand’s economy, making it crucial for Pattaya’s businesses to remain adaptable and monitor developments closely.
As of now, currency traders suggest that the Baht will move within the range of 34.20 to 34.50 Baht per US Dollar, with recommendations to gradually sell at the upper end of the range.
