Thai Baht Hits 16-Year Low at THB37.98 ahead of BOT Rate Hikes

Strong US dollar pushed Thai baht to as much as THB37.98, marking its 16-year peak in USD-THB terms, but losing steam to THB37.90 level.

The resistance at THB38.00 may not be tested as the Bank of Thailand is close to hiking its interest rate in the meeting scheduled to be held this Wednesday. However, economists expected a small hike of 25 basis points would do little to no help cushioning Thai baht.

Earlier, the finance minister said that the Bank of Thailand was closely monitoring the baht weakness, while asserting that there were no significant concerns about the fall despite hitting 16-year low for Thai baht against the greenback that continued to rally on the back of the US Federal Reserve rate hikes.