The Thai baht surged by up to 0.6% against the U.S. dollar on Thursday, reaching 33.8230, marking its highest level since May 2023. The USD/THB faced pressure in Asia after experiencing a 0.65% decrease on Wednesday, influenced by signs of a weakening U.S. economy and a softer job market.
The decline in U.S. yields has had an impact, with the probability of a 50 basis points Federal Reserve cut in September increasing from 38% on Wednesday to 45%.
Federal Reserve’s Daly emphasized the necessity of rate cuts to maintain a healthy labor market, with the magnitude of the rate cut this month dependent on the job market’s condition. On Thursday, Thailand is set to release its August CPI, with forecasts indicating a potential easing of headline inflation to 0.4% from 0.83%. Central bank minutes affirm that the target range for Thai inflation continues to be effective.
