The baht is likely to recover and strengthen to 33-34 to the US dollar by the end of 2023, as the greenback could go into reverse and start to depreciate in six months, says SCB Chief Investment Office (CIO).
The Thai currency traded below 35 baht to the dollar yesterday, moving in a range of 35.15 to 35.38, amid continued concerns over US interest rate hikes. The baht, analysts said, was under pressure from capital outflows from the Thai stock and bond markets amid the dollar appreciation.
The baht has weakened by 5.2% this year.
The dollar’s short-term appreciation is one of the factors contributing to the baht’s short-term depreciation, along with Thailand’s modest current account surplus.
However, Thailand’s current account balance surplus is likely to grow in the medium to…