The Thai baht fell by 0.6% against the US dollar, and the Governor of the Bank of Thailand hinted that there is still room for interest rate cuts.

The Thai baht fell further, with the Governor of the Bank of Thailand, Vitai Ratanakorn, suggesting that there is still room for further interest rate cuts in the future and reiterating support for a weak currency that is in line with fundamentals. The US dollar rose 0.6% against the Thai baht to 31.443, marking the largest increase since January 8. Vitai stated that even with a 50 basis point rate cut, inflation would only increase minimally. He mentioned that potential GDP growth has decreased to 2.7% and the economy is facing structural issues. Vitai also reiterated that the central bank hopes to see the Thai baht depreciate in line with fundamentals.