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USD/THB eases as analysts expect near term consolidation

Commerzbank said the Bank of Thailand kept the one day repurchase rate at 1.00% in a 7-0 vote, supporting expectations the baht will remain volatile around growth and Fed outlooks.

Reported · Written up by our desk · Major Pairs

Commerzbank FX analyst Charlie Lay said USD/THB has eased from about 33.90 in late July to around 32.70, attributing the move to a softer US dollar.

The Bank of Thailand sees recent baht volatility as linked to Middle East risks and shifts in expectations for the Federal Reserve, while maintaining an accommodative bias.

Commerzbank expects near term consolidation in USD/THB around the 32.50 to 33.00 range, citing the Monetary Policy Committee’s decision to hold the benchmark one-day repurchase rate unchanged at 1.00% for the third straight meeting, with a unanimous 7-0 vote.

The analysts added that, given a still-fragile domestic recovery, excessive baht appreciation would be undesirable, and they expect the BoT to stay on hold for the rest of 2026, possibly extending possibly up to H1 2027.

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