Commerzbank Sees Thai Baht Range-Bound Against US Dollar

Commerzbank's analysts forecast that the Thai baht will remain range-bound against the US dollar in the near term, due to a balance of domestic and external factors. The bank points out that Thailand's economic recovery is being offset by the strength of the US dollar, which is driven by the Federal Reserve's hawkish stance and robust US economic data.

The Bank of Thailand's monetary policy also plays a role in this outlook, as moderate inflation gives it room to hold interest rates steady. This reduces the appeal of baht-denominated assets compared to higher-yielding US instruments.

Commerzbank notes that traders should watch for support near recent lows and resistance at psychological levels, as a break beyond these could signal a shift in momentum.