The baht is likely to continue its depreciation trend in the near term after falling below 33 to the dollar, unless the Bank of Thailand sends a hawkish signal on Wednesday about a potential interest rate increase, says Kasikorn Research Center.
The Thai currency weakened to a 13-month low of 33.18 baht to the greenback on Tuesday from Monday’s close of 32.93 amid growing expectations that the US Federal Reserve may raise interest rates later this year to curb inflation risks, said Kanjana Chockpisansin, head of banking and financial sector research at the K-Research.
