The Thai baht has strengthened to a six-month high, trading at 33.18-33.20 to the US dollar, after easing from an overnight rate of 33.08 to the dollar.

This surge is attributed to the intensifying US-China trade war and a weakening US economic outlook.

The baht's recent gain is in line with other Asian currencies as the US dollar depreciated.

Additionally, skyrocketing gold prices, which reached a fresh record high of $3,357.78 an ounce, have supported the baht.

The dollar index has depreciated by 8% this year, while the baht gained 2.4% from 34.10 to the dollar at the end of 2024. There has been a capital flight from the US dollar to other major currencies, particularly the yen and Swiss franc, which have appreciated 10.2% and 11.1% respectively year-to-date.

Foreign capital worth 46.9 billion baht flowed out of the Stock Exchange of Thailand year-to-date, compared with outflows of 148 billion for the entire 2024. However, foreign capital valued at 38.2 billion baht flowed into the Thai bond market for the period.

The US Federal Reserve chair has warned that Trump's tariffs could trigger inflation to spike, and the Fed would wait for more data on the economy's direction before changing interest rates.