The Bank of Thailand said baht was being mainly driven by dollar weakness and the rally in gold prices. The pledge to rein in wild currency swings is in line with previous BOT commitments to ensure an orderly foreign exchange market.
Thailand’s central bank vowed to take steps to ease baht volatility and limit the influence of gold prices after the local currency rallied to a four-year high.
The baht rallied to its highest level since June 2021 on Tuesday, extending its gains this year to around 8%. The surge is seen as a body blow to the trade-reliant Thailand as it deals with the fallout of a 19% US tariff on its exports. The baht strength also discourages foreign tourists, a key source of revenue for the Southeast Asian nation.
