Taming the Baht in Times of Ongoing Volatility

As of June 4, 2025, the Thai Baht has shown sharp fluctuations, strengthening to around 32.1 THB per USD in May before stabilizing near 32.62 by May 28. This volatility, measured at 8.7% in 2025 (up from 8% in 2024), reflects ongoing uncertainty, particularly affecting exporters and the tourism sector.

The Bank of Thailand (BOT) has expressed concerns over the Baht’s misalignment with economic fundamentals, warning it may undermine business competitiveness. Although the BOT has taken steps to intervene in the foreign exchange market, it seems to favor market-driven adjustments unless fluctuations become excessively volatile.