Picture courtesy of Bangkok Post
The Thai baht has soared to its highest level in 19 months against the US dollar, driven by a weaker American currency and profit-taking in gold markets.
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The Thai baht has soared to its highest level in 19 months against the US dollar, driven by a weaker American currency and profit-taking in gold markets.
Opening at 32.92 per dollar today, the baht marked a significant rise from September 20’s closing rate of 33.60 baht. This appreciation follows the dollar’s depreciation, which was triggered by the US Federal Reserve’s (Fed) recent policy rate cut by 50 basis points to curb inflation.
Krungthai Global Markets under the Bank of Ayudhya (Krungsri) reported that the Fed’s rate reduction, supported by updated US economic data, aims to facilitate a soft landing for the US economy. Further rate cuts by the Fed are expected, with predictions of another 50 basis point reduction to 4.25 to 4.5% by year-end, totalling 100 basis points in 2024. Additional cuts of 100 basis points in 2025 and 50 basis…