Thai Baht Weakened by Global Market Dynamics and Domestic Policy

The Thai Baht (THB) weakened against the US dollar (USD) at the end of August, closing at THB32.94/USD on Friday, August 28, 2026. This represents a drop from its previous week's close of THB32.68/USD.

Kasikorn Research Center (KResearch) notes that the Baht experienced volatility throughout the week, with a brief appreciation due to selling pressure on the US dollar. However, this gain was quickly reversed as the US dollar found safe-haven support following the announcement of expanded secondary sanctions targeting Iran's economy.

The downward pressure on the Baht intensified as the week progressed, pushing it closer to the THB33.00/USD threshold. This decline was aligned with a wave of profit-taking in the global gold market and climbing US Treasury yields after better-than-expected economic data.

The Bank of Thailand's (BOT) Monetary Policy Committee (MPC) voted to maintain the policy rate at 1.00%, signaling that monetary policy will remain accommodative to support the Thai economy. The Baht's weakening was accompanied by substantial capital outflows, with foreign investors net-selling Thai equities totaling THB12,228 million and recording net outflows of THB375 million in the bond market.