Thai baht rises to highest since 2022 on trade optimism, inflows

[SINGAPORE] Thailand’s baht rose to the highest in more than three years on growing optimism over trade negotiations, the return of foreign stock inflows, and near-record high gold prices.

The local currency strengthened 0.1 per cent to 32.12 per US dollar on Thursday (Jul 24), the strongest since February 2022.

Finance Minister Pichai Chunhavajira said on Tuesday the nation is close to an agreement with the US to lower a threatened 36 per cent tariff on its goods ahead of the Aug 1 deadline, and expects a rate closer in line with regional neighbours. The baht has gained almost 7 per cent this year, putting pressure on authorities to curb its strength to protect the nation’s economic drivers of tourism and exports.

“Bank of Thailand will continue to watch for any excessive volatility,” said Christopher Wong, senior foreign-exchange strategist at OCBC in Singapore. A break of the resistance level at 32 to 32.1 baht per US dollar may add more tailwind to the currency, he said.

Thailand’s foreign-exchange reserves climbed to a record US$263 billion earlier in July, partly as officials stepped up their intervention to slow the baht’s appreciation.

Easing tensions between two of Thailand’s largest trade partners, the US and China, are also soothing investor worries. Global funds have poured a net US$345 million into Thai equities in July, on track for the first monthly inflow in 10 months.

On Wednesday alone, global funds poured in US$139 million into stocks, the largest single-day inflow in 10 months.

The baht is also underpinned by near-record high gold prices, given the country’s status as a major trading hub for the precious metal in Asia.

Asian currencies

Asian currencies have rallied this year as the US dollar weakened on concerns over the impact of US President Donald Trump’s tariffs on the US economy. The Bloomberg Asia Dollar Index surged 7 per cent in 2025.

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In Thailand, the rebound in the baht is adding to concerns over the nation’s economic growth, prompting some ministers and business groups to call for the central bank to weaken the currency.

Tourism is faltering with the Tourism Authority of Thailand lowering its forecast for foreign tourist arrivals in 2025 to 35 million from 40 million. BLOOMBERG