Baht to the future: Thai currency takes a pounding as US tariffs bite
The Thai baht has taken a serious beating, diving to its weakest level in two and a half months, and it’s only set to sink further, after the US threw a financial curveball with a whopping 37% reciprocal tariff on Thai imports.
The baht slipped to 34.38 to the dollar yesterday, April 3, with intraday lows hitting 34.44, a rate not seen since Donald Trump first took office. The sudden nosedive has left investors rattled and market analysts warning of more pain to come, said Kanjana Chockpisansin, head of banking and financial sector research at Kasikorn Research Center
“It’s the tariff’s impact. In the forthcoming month, we foresee the baht continuing to weaken, possibly testing its previous low of 34.85 per dollar. Should the baht fall below this threshold, it may challenge a new support level at 35.50 per dollar.”
The tariff, which far exceeded the expected 10–25% range, has sparked fears of an economic slowdown and sent investors running for cover.
Krungthai Global Markets, part of Krungthai Bank (KTB), said the baht opened at 34.38 yesterday, down sharply from 34.16 the day before. The currency then wobbled between 34.07 and 34.45, highlighting the jittery state of the markets, Bangkok Post reported.
Poon Panichpibool, market strategist at KTB, noted that although the final 37% tariff was lower than the initially threatened 72%, it still caught markets off guard, adding fresh fuel to financial pressure and encouraging risk-averse behaviour.
As the baht buckles, economic experts are calling for action.
Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Financial Group, said the government should urgently engage in both domestic and international talks to soften the blow.
“Negotiations should start with key sectors like agriculture, food, energy and finance. We need a strategy that balances the risks and seizes any new opportunities this shift brings.”
While rising global gold prices may offer a glimmer of support to the currency, the overall outlook remains bleak unless talks gain ground and fast.
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