BANGKOK, Thailand – The Thai baht weakened past the 34.00 mark against the US dollar today, reaching a one-week low of 34.12 baht per dollar before stabilizing at around 34.06-34.08 baht per dollar. This was compared to the previous day’s closing rate of 33.90 baht per dollar. The baht’s decline follows the general weakness in Asian currencies, in contrast to the strengthening US dollar.
The US dollar gained momentum due to rising trade tensions, particularly following President Donald Trump’s decision to increase the tariff on aluminum imports to 25% and eliminate country-specific exemptions and agreements under quotas. Additionally, the president announced the removal of exemptions for over a hundred product categories related to both aluminum and steel, effective March 4.
The US dollar’s strength is also supported by market expectations that the Federal Reserve is unlikely to signal a rate cut anytime soon.
The Thai baht is expected to trade within a range of 33.85-34.15 baht per dollar. Key factors to watch include President Trump’s economic and trade policies, the direction of the Chinese yuan, statements from Federal Reserve officials, and foreign capital flows. (TNA)
