The Thai baht continued to depreciate, reaching 36.24 baht per USD this morning, the lowest in 10 months. The currency has already weakened by 1.4% over the past week.

The Thai baht continued to depreciate, reaching 36.24 baht per USD this morning, the lowest in 10 months. The currency has already weakened by 1.4% over the past week.

SCB Financial Markets expects the currency to be trading in the range of 35.95 to 36.25 baht per USD today. They said foreign investors are still selling their assets in Thailand, both in the bond and stock markets. Investors are also concerned about the impact of the government's stimulus measures on the country's financial stability.

Krungsri's Global Markets said crude oil prices have increased by 30% over the past three months, adding pressure to Thailand's trade balance. They also said investors are concerned that the government is willing to prioritize short-term economic growth over long-term financial stability.

The Bank of Thailand has reiterated many times that there is no need to stimulate consumption while Thai government bond yields are surging due to concerns over possible rising public debts from populist policies. There is a chance that the baht will continue to weaken.

Krungthai GLOBAL MARKETS said the baht has been depreciating more than other currencies in Asia, reflecting the impact of domestic factors. Investors are also unsure about the amount of Thai government bond issuance in the future. Many investors are also awaiting the results of the Federal Open Market Committee's meeting tomorrow, which could possibly strengthen the USD further if the new Dot Plot indicates that the Fed might hike its interest rates one more time this year.