SCB sees stronger baht in second half

Siam Commercial Bank (SCB) expects the baht to strengthen against the US dollar in the second half of this year, though the movement will be limited due to Thailand's slower GDP growth.

- SOMRUEDI BANCHONGDUANG

SCB, the country’s fourth-largest lender by total assets, forecasts the baht to range between 31.50 and 32.50 per dollar by year-end.

The primary driver of the appreciation is external factors, particularly the weakening of the US dollar due to growing uncertainty surrounding American tariff policies, said Wachirawat Banchuen, senior financial markets strategist at SCB.

According to Mr Wachirawat, the trend of dollar depreciation is expected to continue in the near term.

Global investors are diversifying their portfolios away from US assets, leading to capital outflows from the US and downward pressure on the dollar. These flows are shifting towards European, Asian and emerging markets, he said.