The Thai baht strengthened against the greenback on Monday, gaining 0.6% to 33.73 against the U.S. dollar as Thailand’s opposition parties look set to be the biggest winners in Sunday’s general election.
The baht hovered at its strongest levels since February earlier this year when it was trading below the 33.5 threshold.
The currency saw its recent weakest point in October last year as the U.S. Federal Reserve continued its tightening cycle to above 38.3 against the greenback, the weakest the Thai currency had been since August 2006, Refinitiv data showed.
Monday morning’s rally of the baht, according to analysts at Bank of Ayudhya, was against other regional currencies in which its value fell. The election results provide strong backing for the baht, but traders await the outcome of what happens next, such as the formation of a government and the selection of a prime minister.