Bangkok: The Thai baht experienced its weakest point in over 15 months, trading at 33.868 baht per US dollar, owing to the ongoing Middle East crisis and a significant drop in gold prices. In Thailand, gold prices saw a sharp decrease of up to 1,000 baht per baht weight this morning.
According to Thai News Agency, the Kasikorn Research Center reported that the Thai baht reached a low of 33.868 baht per US dollar before slightly recovering to around 33.80-33.82 baht per US dollar this morning, aligning closely with the previous day's closing level of 33.81 baht per US dollar. The currency, along with most Asian counterparts, faced pressure amid concerns about the Middle East situation, with Brent crude returning to $100 per barrel, and potential future interest rate hikes by the Federal Reserve.
The weakening of the Thai baht is further exacerbated by the decline in global gold prices. However, experts advise caution regarding intraday volatility, as Asian currencies might strengthen in alignment with the yen, following indications from Japanese authorities of a potential intervention to address market volatility.
The United States has imposed tariffs under Section 301 on over 60 trading partners, including Thailand, which faces a rate of 12.5%. The latest US Macroeconomic Policy and Exchange Rate Report continues to keep Thailand on its Monitoring List. Despite these developments, there has been no significant impact on the Thai baht this morning, even as President Donald Trump announced plans to target critical Iranian infrastructure.
For the day's trading range, the initial estimate is set between 33.75 and 33.90 baht per dollar. Key factors to monitor include Thailand's June export figures, the evolving Middle East situation, foreign fund flows, and the performance of other regional currencies.
In the gold market, prices in Thailand dropped sharply by as much as 1,000 baht per baht weight this morning. At 11:12 AM, the Gold Traders Association announced the 7th price adjustment, with gold bars selling at 64,500 baht per baht weight and gold ornaments at 65,300 baht per baht weight.
Globally, gold prices declined significantly in Thursday's trading, dropping from a two-week high achieved the previous day. August gold futures on the COMEX market fell by $101.70, or 2.45%, closing at $4,050.20 per ounce. The tensions in the Middle East have driven oil prices higher, sparking inflation concerns and reinforcing expectations of continued interest rate hikes by the Federal Reserve. This scenario has led to a stronger dollar and increased US Treasury yields, impacting the opportunity cost of holding gold, which is a non-interest-bearing asset.