Thai Baht Plummets with US Tariff Blow: 34.50 per Dollar Test Looms

[webfact]

Picture courtesy of Kasikorn Research Centre

 

The Thai baht is expected to plunge to an alarming 34.50 per US dollar following the US's unexpected announcement of a hefty 37% reciprocal tariff on Thai imports.

 

On Thursday, the baht staggered to its weakest in two and a half months, recording a value of 34.38 per dollar in trading, primarily due to these severe trade measures.

 

Kanjana Chockpisansin from Kasikorn Research Center, Thailand, shared that the latest tariff decisions might drive the baht further downwards.

 

The surprising 37% tariff, significantly above the anticipated 10-25% range, is likely to erode investor trust and stir a ‘risk-off’ sentiment amongst investors.

 

This approach may accentuate economic woes, with greater pressure anticipated for the baht against the dollar, even amidst a rise in global gold prices, traditionally seen as a financial safe haven.

 

 

 

 

As the baht flittered between 34.07 and 34.45 per dollar post-announcement, analysts note the unsettling environment across markets.

 

Krungthai Global Markets noted the baht began Thursday at 34.38 per dollar, recording a notable drop from the prior day’s 34.16, highlighting forex volatility.

 

While the 37% tariff sits below American predictions of a towering 72%, it surpasses market assumptions, leading to intensified market uncertainty and heightened risk aversion amongst investors.

 

Pipat Luengnaruemitchai of Kiatnakin Phatra Financial Group urged the importance of strategic negotiations to dampen these tariff impacts. Internal and external discussions, particularly those targeting critical economic spheres like agriculture, food, energy, and finance, may be pivotal.

 

The Thai government's task is now to smartly navigate looming opportunities and threats in light of this significant US tariff challenge.

 

In summary, the baht's facing a tumultuous path ahead, with potential to dip further if strategic measures aren't promptly deployed.

 

The situation underscores the volatile nature of international trade and finance, demanding vigilant and tactful economic diplomacy to safeguard Thailand's financial stability amidst US tariff frictions.

 

Based on a story by Bangkok Post

 

-- 2025-04-04

 

 

[Pouatchee]

i am looking at the cdn $ and it hasn't been this good in quite a while. Damn I am starting to love these tariffs...

[Seagull Sam]

Let's all have a good laugh at the crazy nutjob the dumb ass Mid West put in charge of the world economy. 

It will all end in tears before bed time and the Chinese will think all their birthdays have come at once. 

[maddox41]

The Thai B been inflated for years about time it come down  get some of there own medicine. 

Go Tariffs time for Thailand to have a good hard look at themselves and pull there head out of there Ar..  Which will never happen 

[Harrisfan]

Cool

 

More good news

 

Go Don

 

 

[dinsdale]

I've seen that currency manipulation was also part of Trump targeting countries with higher tariffs. He specifically pointed out China. 

[factual monk]

To be honest..

 THB is bit inflated as compared to other SE Asian currencies... 

[madmitch]

That is about a 1% loss of value against the USD, hardly a plummet.

 

However, the USD has lost ground against the Euro and other currencies so the baht has weakened more against the Euro and GBP.

[Formaleins]

4 minutes ago, madmitch said:

That is about a 1% loss of value against the USD, hardly a plummet.

 

However, the USD has lost ground against the Euro and other currencies so the baht has weakened more against the Euro and GBP.

50% would be the kind of plummeting I'd love to see - where are the good old days of 1997 and 1998? 85-90 Baht to the pound! The good old days of buying a pickup and selling it for more than you paid 5 years on!

[Chosenfew]

14 minutes ago, Harrisfan said:

Cool

 

More good news

 

Go Don

 

 

On top of this great news, we will soon have no tax on Social Security!

[shackleton]

Good to see the British pound sterling now over the $1.30 to the USA dollar

And 44-45 to the Thai baht 

Keep the Brit tourists and expats happy 💰 🤑 

[PomPolo]

Not really that alarming it was at 33.50 on the 16th March, the Americans can't really complain it is their president that has destroyed global trade and the world economy, including everyone's exchange rates

[pomchop]

6 minutes ago, Chosenfew said:

On top of this great news, we will soon have no tax on Social Security!

that is assuming you still receive social security....

[bbbbooboo]

hmmm… very good news

[hotchilli]

5 hours ago, webfact said:

Pipat Luengnaruemitchai of Kiatnakin Phatra Financial Group urged the importance of strategic negotiations to dampen these tariff impacts.

No way to talk your way out of this one, drop your tariffs or put up with it.

Or sell you products to other countries... good luck with that one.

[Formaleins]

29 minutes ago, shackleton said:

Good to see the British pound sterling now over the $1.30 to the USA dollar

And 44-45 to the Thai baht 

Keep the Brit tourists and expats happy 💰 🤑 

If it gets back to 65 Baht to the pound, I may crack a smile. and when they put the cans of Tuna back down to 8 Baht, then things are looking better.

[LALes]

Since when is 34.50 a plummet?

Get real.

[PeachCH]

Today around 34.15. At least the plunging Bath can recover in the short term. A relief for the retired Falangs living in Thailand 👍

[pomchop]

Just now, PeachCH said:

Today around 34.15. At least the plunging Bath can recover in the short term. A relief for the retired Falangs living in Thailand 👍

yes a nice refreshing plunging bath is a relief

[riverhigh]

"The Thai government's task is now to smartly navigate looming opportunities and threats in light of this significant US tariff challenge. In summary, the baht's facing a tumultuous path ahead, with potential to dip further if strategic measures aren't promptly deployed."

 

This is not complex problem. A problem that even a person  of minimal intelligence can solve. Reduce tarrifs against the USA and stop being stupid. Okay, just reduce the tarrifs. Stop being stupid is a big ask.

 

 

[koolkarl]

And if the government doesn't dump CRS, more baht pain over years.  I have always felt this is a Thaksin idea.

[spidermike007]

All nations must consider ways to insulate themselves from the insane trade policies of the US, only two times in the past has the US engaged in the kind of trade policies they are now engaged in. Both times in 1828 and1930 it resulted in a pretty severe depression.

 

Trump has no idea what he's doing, he's totally out of his league, he's being poorly advised, and the world is paying the price for his arrogance. So will the US. The baht very well could climb higher against the dollar, as I expect the dollar to start weakening. 

[kwak250]

7 hours ago, Pouatchee said:

i am looking at the cdn $ and it hasn't been this good in quite a while. Damn I am starting to love these tariffs...

Must admit Trump isnt so bad every cloud and all that

[Ben Zioner]

2 hours ago, madmitch said:

That is about a 1% loss of value against the USD, hardly a plummet.

 

However, the USD has lost ground against the Euro and other currencies so the baht has weakened more against the Euro and GBP.

Worry the USD gets wiped out, and US defaults.

 

I could convert my pension at 31.47 though...

[KannikaP]

1 hour ago, Formaleins said:

If it gets back to 65 Baht to the pound, I may crack a smile. and when they put the cans of Tuna back down to 8 Baht, then things are looking better.

According to my Currency App, GBP-THB dropped from 45.2 to 44.4 since last evening 18.00.

[Formaleins]

14 minutes ago, KannikaP said:

According to my Currency App, GBP-THB dropped from 45.2 to 44.4 since last evening 18.00.

I can imagine! Hell, the UK is run by even less competent fools than this place - Britain is sunk.

[rough diamond]

32 minutes ago, spidermike007 said:

he's being poorly advised,

He may actually be getting good advice but just ignoring it!

[riclag]

3 hours ago, Seagull Sam said:

Let's all have a good laugh at the crazy nutjob the dumb ass Mid West put in charge of the world economy. 

It will all end in tears before bed time and the Chinese will think all their birthdays have come at once. 

Facts you misrepresent,Swing states that gave the office to 47: Wisconsin, Michigan, Pennsylvania,

North Carolina , Georgia, Arizona & Nevada !

You're  mid west facts lol is 2 out of 7 !

 

Besides being out of touch with who voted & where , we had no choice it was either the right or the far left party of they/ them.

 

[Regyai]

3 hours ago, shackleton said:

Good to see the British pound sterling now over the $1.30 to the USA dollar

And 44-45 to the Thai baht 

Keep the Brit tourists and expats happy 💰 🤑 

 

If the Trumpster could tariff the world so that the £ was back to the old days of 70+฿ to the £GBP it would be even better

[KireB]

4 hours ago, maddox41 said:

The Thai B been inflated for years about time it come down  get some of there own medicine. 

Go Tariffs time for Thailand to have a good hard look at themselves and pull there head out of there Ar..  Which will never happen 

No, it hasn't. The Thai Baht gets its value because people buy a lot of Baht (investors, tourists). Market forces determine the value of a currency.