BANGKOK, Thailand – The Thai baht has dropped to its weakest point in three months, surpassing 35 THB per US dollar, following a surge in the value of the US dollar. Analysts from Kasikornbank’s research department suggest the baht could continue to weaken, potentially reaching 35.50 THB per dollar in the near future.
The currency’s decline is largely attributed to stronger-than-expected US inflation data for October, which has led to speculation that the US Federal Reserve (Fed) may delay its interest rate cuts. Additionally, concerns over the policies of former President Donald Trump have further fueled the US dollar’s strength, with fears that these policies could contribute to acceleration in inflation.
Gold prices have also seen a significant drop of nearly 250 dollars per ounce, further putting pressure on the baht. Kasikornbank analysts predict that the baht will continue to face downward pressure in the coming weeks, with resistance levels at 35.35 THB and 35.50 THB per dollar.
Experts continue to monitor these economic factors closely, with expectations that the baht’s depreciation may persist due to the ongoing risks in the global market.
