THB weakens to near 15-month lows against USD as elevated oil prices and higher US yields pressure the currency amid BoT’s accommodative policy.
The Thai Baht traded near its weakest level in over a year against the US Dollar, driven by volatile oil prices, a stronger USD, and rising US yields. The currency’s decline reflects concerns over imported inflation and energy costs, which could prolong elevated US interest rates.
The Bank of Thailand’s dovish stance has offered little support, with Governor Vitai signaling no urgency to tighten policy. Analysts warn that sustained oil price increases and inflation risks may test policymakers’ tolerance for further depreciation.
Market focus remains on the interplay between external pressures and domestic policy, as THB’s reliance on imported energy exacerbates its vulnerability.