Weakening trend is dubbed short-term
A foreign tourist exchanges currency at a money exchange booth in Bangkok. (Photo: Somchai Poomlard)
The narrowing trade deficit and easing inflationary pressure should support the baht regaining strength against the US dollar late in the third quarter this year, reversing a short-term depreciation trend, says Siam Commercial Bank Financial Markets (SCB FM).Wachirawat Banchuen, senior financial markets strategist at SCB FM, said the baht depreciation trend is largely temporary and does not signal a prolonged weakening.
The Thai currency recently weakened below 33 baht to the dollar, briefly approaching 33.5, driven by short-term factors rather than underlying economic deterioration, he said.
"The baht has not weakened significantly compared with other regional currencies and remains relatively stable," said Mr Wachirawat.
