Thai baht hits 15‑month low as US dollar strength and Middle East tensions weigh

The Thai baht fell to about 33.8 per US dollar on Thursday, its lowest level in 15 months. Analysts attributed the drop to a stronger US dollar and heightened geopolitical risk from tensions in the Middle East, which pushed investors toward safe‑haven assets. The currency’s weakness was also linked to Thailand’s energy import costs, fragile tourism recovery, and capital flow dynamics.

For expatriates and retirees receiving foreign‑currency income, the lower baht temporarily boosts purchasing power, while tourists benefit from cheaper local spending. However, imported goods such as electronics, vehicles and certain medicines become more expensive, raising the risk of imported inflation.

Foreign investors showed mixed behavior, buying roughly 1.9 billion baht of Thai equities while selling about 5.7 billion baht of Thai bonds. The Kasikorn Research Center expects the baht to trade between 33.75 and 33.90 per dollar in the near term.