Baht Soars as US-Japan Intervention Supports Emerging Markets

A joint intervention by the US and Japan to stabilize the yen has contributed to the appreciation of the Thai baht, which is likely to continue gaining against the US dollar in the near term.

The baht reached a six-week high of 32.87 to the greenback on Friday as investors reassessed their expectations of a potential US interest rate hike next month following softer-than-expected economic data.

Amonthep Chawla, executive vice-president and head of research at CIMB Thai Bank, noted that the market had previously priced in the possibility of a rate hike but has now eased concerns.

This shift in expectations has led some funds to flow back into emerging markets, including Thailand, supporting the baht's appreciation.