The Thai baht fell more than 1%, marking the largest decline in seven months as market concerns about increased intervention risks grow

After rising for six consecutive weeks, the Thai baht fell by 1.2% today (29th) during the Asian session, trading at 31.36 against the US dollar, marking the largest decline in seven months. Previously, influenced by rising gold prices and other factors, the baht had climbed to its highest level since March 2021 last week, with traders warning that authorities might take intervention measures.

Wee Khoon Chong, a strategist at Bank of NY Mellon, stated that the Bank of Thailand and the government may intensify efforts to curb the appreciation of the baht. So far, the market has largely ignored the warnings from the Bank of Thailand, but last week's significant correction of the South Korean won will heighten market vigilance