13.04.202602:38:17UTC+00Thai Baht Pulls Back

The Thai baht weakened past 32 per dollar in mid-April, pulling back from a four-week high and ranking among the poorest performers in Asia, as the US dollar strengthened on the back of renewed US-Iran tensions. The US military is scheduled to begin a blockade of Iranian ports on April 13, to be enforced uniformly on vessels of all nations entering or leaving Iranian ports and coastal waters. At the same time, President Donald Trump is reportedly weighing limited military strikes on Iran. These steps follow failed peace negotiations and have intensified concerns over a drawn-out conflict. The escalating tensions are exerting substantial pressure on Thailand’s economy, primarily via higher energy costs, with officials warning that the fallout could surpass that of the 2020 pandemic. Nonetheless, the Bank of Thailand has indicated it intends to keep interest rates unchanged for as long as possible to support economic growth, even as rising oil prices add to inflationary pressures.