Thai Baht Hits Near 1-Month High

2026-04-08 04:50 By Czyrill Jean Coloma 1 min. read

The Thai baht strengthened to around 32 per dollar, marking its third straight session of gains and hitting its highest level in nearly a month, as the Middle East ceasefire reduced demand for the safe-haven US dollar.

The ceasefire agreement revealed that the US and Iran had agreed to a two-week truce, narrowly averting what could have been a devastating escalation in the region.

Iranian Foreign Minister Seyed Abbas Araghchi confirmed that access to the Strait of Hormuz would remain open, contingent on coordination with Iran’s armed forces.

The Middle East war is severely impacting the Thai economy, especially with rising oil costs, and officials cautioned that the damage could exceed that of the COVID-19 era.

Investors are now turning their attention to the Bank of Thailand's monetary policy decision on April 29, after the central bank surprised the markets in February 2026 by cutting its benchmark interest rate by 25 bps to 1%, defying expectations that it would hold rates steady.



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Thai Baht Hits Near 1-Month High
The Thai baht strengthened to around 32 per dollar, marking its third straight session of gains and hitting its highest level in nearly a month, as the Middle East ceasefire reduced demand for the safe-haven US dollar. The ceasefire agreement revealed that the US and Iran had agreed to a two-week truce, narrowly averting what could have been a devastating escalation in the region. Iranian Foreign Minister Seyed Abbas Araghchi confirmed that access to the Strait of Hormuz would remain open, contingent on coordination with Iran’s armed forces. The Middle East war is severely impacting the Thai economy, especially with rising oil costs, and officials cautioned that the damage could exceed that of the COVID-19 era. Investors are now turning their attention to the Bank of Thailand's monetary policy decision on April 29, after the central bank surprised the markets in February 2026 by cutting its benchmark interest rate by 25 bps to 1%, defying expectations that it would hold rates steady.
2026-04-08
Thai Baht Slips to 10-Month Low
The Thai baht fell to around 33 per dollar, reaching the lowest level in ten months as escalating geopolitical tensions in the Middle East weighed on market sentiment. The currency remains under pressure as the war between the US, Israel, and Iran enters its fourth week, with escalating tensions following strikes on Iranian infrastructure and a strong response from Tehran. President Donald Trump has issued a 48-hour ultimatum to reopen the waterway, warning of strikes if it is not met, while Iran has threatened to close the strait and escalate retaliation if attacks continue. Brent crude has surged more than 50% since the start of the conflict, increasing import costs and worsening Thailand’s terms of trade, which has placed downward pressure on the baht. The currency has fluctuated by about 9% year-to-date, reflecting heightened sensitivity to global risk sentiment and energy shocks.
2026-03-23
Thai Baht Rises Despite Surprise Rate Cut
The Thai baht edged higher to around 31 per dollar in late February, despite a surprise move by the Bank of Thailand to cut its interest rate. At its February 2026 meeting, the central bank reduced the policy rate by 25 bps to 1%, defying market expectations of a hold. It was the sixth reduction since October 2024, bringing the cumulative cut to 150 bps as authorities aim to support an economy weighed down by US tariff uncertainty, high household debt and a persistently strong baht. US President Donald Trump recently announced plans to set global tariffs at 15% after a Supreme Court ruling that invalidated his tariff policy, lower than the 19% rate applied to Thailand. Meanwhile, political developments have provided some investor relief. Prime Minister Anutin Charnvirakul’s Bhumjaithai Party is expected to lead a new coalition government by April, following solid results in a general election earlier this month. This outcome eased investor concerns about political instability.
2026-02-25