BANGKOK, Thailand – The Thai baht opened this morning (March 4) at 34.06 THB per USD, appreciating slightly from the previous closing level of 34.16 THB per USD. The currency is expected to move within a range of 33.95-34.25 THB per USD over the next 24 hours.
Overnight, the baht gradually strengthened as the US dollar weakened following mixed US economic data. The latest ISM Manufacturing PMI for February fell to 50.3 points, lower than market expectations. This raised speculation that the Federal Reserve (Fed) may proceed with three rate cuts (totaling 75 basis points) this year, with an additional 25 basis point cut in 2025.
Further pressure on the US dollar came from a rebound in the euro (EUR), supported by rising European stock markets. At the same time, concerns over US trade protectionist policies and risk-off sentiment in US financial markets boosted demand for safe-haven assets, including gold and the Japanese yen (JPY). The rise in gold prices and the strengthening of the yen added pressure on the dollar, contributing to the baht’s appreciation.
However, the baht’s gains were limited by the weakening Chinese yuan (CNY) after the US announced plans to impose an additional 10% tariff on Chinese imports.
Short-Term Outlook
Despite some downside risks, the baht may face resistance around 34.30 THB per USD, while key support is expected in the 33.90-34.00 THB per USD range. Importers may look for opportunities to buy USD when the baht strengthens. Additionally, oil-related transactions could influence currency movements, as crude oil prices have recently declined due to concerns over OPEC+ increasing production and the potential economic impact of US trade policies.
The market will continue to monitor global economic developments and policy signals from central banks for further direction.
