BANGKOK, Thailand – The Thai Baht opened at 33.12 THB per USD on April 17, showing appreciation from the previous day’s close at 33.23 THB per USD. The Baht’s strength is primarily driven by the continued flow of profit-taking from gold transactions, as gold prices (XAUUSD) reached a new all-time high. This upward trend in the Baht follows a breakout from the 33.50 THB per USD support level, continuing its rise within the 33.07 – 33.27 THB per USD range.
The Baht’s rally has been further supported by ongoing risk-off sentiment in the US financial markets, stemming from concerns over the Trump administration’s trade policies and their potential impact on the US economy. Federal Reserve officials have also expressed worries that these trade policies could hinder economic growth and contribute to higher inflation. However, Fed Chairman Jerome Powell indicated that the Fed would adopt a cautious approach to monetary policy, signaling that rate cuts may not be necessary unless economic conditions warrant them.
The appreciation of the Baht was also aided by a slight decline in the US Dollar, following mixed economic data reports. March retail sales grew by 1.4% month-on-month, slightly better than expected, but industrial production in March contracted by 0.3% month-on-month, falling short of projections.
Looking ahead, market players will focus on the European Central Bank (ECB) meeting, where analysts expect a 25 basis point cut to the deposit facility rate to support the Eurozone economy amid risks from US trade policies. Additionally, US jobless claims data and Fed official statements will be closely monitored for insights into the US labor market and potential policy changes.
In Asia, attention will also be on Japan’s March Consumer Price Index (CPI) report, which could influence the Bank of Japan’s monetary policy. With economic data, corporate earnings, and global trade policy concerns in focus, the Baht’s appreciation may continue, supported by ongoing gold price trends.
The Baht remains poised to test the key support zone of 32.90 – 33.00 THB per USD, driven by gold price gains. However, if the USD strengthens based on better-than-expected US economic data and earnings reports, the Baht may face some headwinds, particularly with the potential for a rebound in the Dollar amid uncertainty in US trade policies.
