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Thai baht holds near 15-month lows as oil and US yields pressure THB

Analysts at OCBC point to Bank of Thailand tolerance for gradual weakness, but warn that elevated oil could intensify imported inflation and test policymakers.

Reported · Written up by our desk · Major Pairs

OCBC analysts Sim Moh Siong and Christopher Wong said the Thai baht is trading near its weakest level in more than a year against the US dollar, with multiple external factors weighing on THB.

They cited volatile oil prices, a firmer USD, and higher US yields as key drivers, noting that the Bank of Thailand has an accommodative stance and is willing to tolerate gradual weakness.

Still, OCBC warned that if depreciation accelerates and oil stays elevated, imported inflation could build, creating pressure for policymakers.

FXStreet also highlighted the renewed oil shock as a renewed headwind for the baht, describing THB as under pressure near a 15-month low versus USD.

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