Thai Baht Hits One-Year Low as US Rate Gap Widens
By Aboki Forex —
The Thai baht has fallen to its lowest level in a year. It dropped as much as 0.5% to 33.09 against the US dollar. That is the weakest since May 2025.
The decline is driven by expectations of a wider interest rate gap between the United States and Thailand. US markets now fully price in a quarter-point Federal Reserve rate hike by October. In contrast, baht swaps show only a 40% chance of a 25-basis-point increase in the next six months.
Domestic demand in Thailand is also under pressure from multiple headwinds. That adds to the currency's weakness.