Thai Baht Hits Lowest Point in 15 Months Amid Middle East Tensions
The Thai baht has hit its lowest point in 15 months against the US dollar due to a combination of factors. The currency weakened to 33.848 baht per US dollar during trading on Thursday, surpassing its previous low since April last year. This decline was largely driven by the strengthening of the US dollar, which has become a safe-haven asset as investors seek to mitigate risks associated with Middle East tensions.
The Kasikorn Research Center attributed the baht's weakness to the rising geopolitical risk, particularly the situation in the Red Sea and the Strait of Hormuz. This concern led to a surge in demand for safe-haven assets like the US dollar, putting pressure on regional currencies such as the Thai baht.
Foreign investors' sentiment was mixed, with them buying 1.891 billion baht worth of Thai stocks but selling 5.715 billion baht worth of Thai bonds. This indicates a level of caution in fixed income investments amidst ongoing uncertainty.