Thai Baht Hits 16-Year High at THB36.98 as US Treasury Yields Rise in Anticipation of Rate Hikes

Thai baht continued to depreciate against the US dollar, hitting a fresh 16-year high of 36.98 amid risk-off and testing the 37.00 support level.

As the market pricing in for a 75 basis point rate hike by the U.S. Federal Reserve later this month with a probability for a full percentage point hike, further rise in US Treasury Yield

added to haven USD bids.

The Bank of Thailand (BOT) said on Wednesday that there were no unusual capital movements and the weakness in the baht currency was mainly driven by the strength of the greenback, while reaffirming that the kingdom’s external position and financial stability remained strong.