The Thai currency continues its upward trend and is approaching the threshold of 30 baht per dollar, a level not seen in over four years.
This rise is driven by the historic surge in gold prices and the persistent weakness of the US dollar, according to foreign exchange market analysts.
This Wednesday, December 24, 1 euro is worth 36.65 Thai baht and 1 US dollar is worth 31.08 baht.
See: Thai baht (THB) exchange rate: daily rate against the euro
Gold propels the baht to its highest levels in 4.5 years
The rise in the price of gold is driving the Thai baht higher.
L’or a atteint un nouveau sommet, approchant les 4 500 dollars l’once le mardi 23 décembre 2025, sous l’effet de la faiblesse générale du dollar américain, de l’intensification des tensions géopolitiques entre les États-Unis et le Venezuela et des achats massifs des banques centrales.
The surge in gold prices has led to an appreciation of the baht, which has reached its highest level in 4.5 years, at 31.10-31.12 per dollar, with the dollar index extending its losses for the second consecutive session to 98.10 at the start of the Asian session.
The yen gains strength: a domino effect on Asian currencies
Japanese yen bills and calculator.
The Thai currency has been supported by a sharp appreciation of the yen, which rose 0.7% to 156.00 per dollar, prompting Japanese authorities to issue a stern warning of intervention, as the currency has deviated from fundamentals.
"In the short term, it is possible that the baht will test 31 to the dollar, or even higher," said a forex trader.
The baht becomes the best-performing currency in the region in 2025
Bills of baht, dollars and other currencies
Gold has soared nearly 70% this year and hit multiple records, while the baht has risen more than 10%, making it the top-performing currency in the region.
Ratasak Piriyanont, senior vice president of investment strategy at Kasikorn Securities, said:
“This year, we have seen a relatively strong correlation between the baht and the price of gold, as evidenced by their movement in the same direction and with similar magnitude.”
The Bank of Thailand overtaken by the baht's surge
Bank of Thailand. Photo: Money and Banking Online
Poonyawat Sreesing, senior economist at the Siam Commercial Bank's Economic Intelligence Center, said that the baht has been mainly influenced by global factors, in addition to unknown domestic factors.
It seems that the Bank of Thailand has not clearly determined what the domestic factors are behind the baht's sharp appreciation in recent weeks.
The regulator has attempted to implement several measures to control capital flows, particularly gray money, but these measures take time to slow the baht's strength, he said.
Mr. Poonyawat added that the central bank and other government agencies in charge of capital flows should not take "too harsh measures".
“The Thai capital market is currently too fragile to withstand the profound repercussions of state intervention,” he said.
See: The Bank of Thailand lowers its rates in the face of economic slowdown
Towards better coordination of authorities to curb the rise of the baht?
A tourist prepares to exchange money at a currency kiosk in Bangkok's Chinatown. Photo: Nittaya Nattayai
Kanjana Chockpisansin, head of research at Kasikorn Research Center's banking and finance sector, said that integration between the agencies concerned was necessary to cope with the baht's fluctuation.
“Collaboration in data collection and compilation, as well as in tracking gold and its locations, is necessary to directly address the issue and ensure better results,” she said.
Without coordinated action, analysts estimate that the upward pressure on the baht could continue into 2026.
- The Thai baht is approaching the symbolic threshold of 30 to the dollar, a high not seen in over four years.
- The historic surge in gold prices and the weakness of the dollar are strongly supporting the Thai currency.
- With a rise of over 10% in 2025, the baht is becoming the best-performing currency in the region.
- The Bank of Thailand is struggling to curb this appreciation without further weakening the economy.
See also:
Thailand aims for 39 million tourists by 2026, but the baht is a threat
The dramatic rise of the Thai baht worries the Central Bank
Baht too strong: Bank of Thailand prepares emergency measures
Thai Airways suffers from competition and strong baht: -64.6% in Q3
Source: Bangkok Post
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4 comments
The "bankers" are still doing great!!!
If they continue like this, they will have a severe deflation, like Japan in the 1990s.
And then good luck getting out of it…
I note with some satisfaction that there is at least one Thai person in this country, namely Mr. Poonyawat Sreesing, an economist at Siam Commercial Bank, who notes (in more muted terms than I) that financial actors at the Bank of Thailand are unable to properly analyze the monetary situation in Thailand and provide solutions to the overvaluation of the Thai currency.
Unable to bring the value of the baht (as he very judiciously suggests) to an exchange rate around 40 baht/1 euro, and for once, it's not me saying it, but a Thai expert in the field.
On the other hand, the specialists and "experts" of the Bank of Thailand seem powerless to activate the mechanisms that would bring the baht to this value, in order to offer the national and international economy a much-needed lifeline to first stop this overvaluation of the currency (the argument of the rise in the price of gold is not an excuse, this safe-haven value having been constantly rising since always, which did not prevent the baht from remaining in the 2000s between 40 to 50 baht for 1 euro !!!)
And as I said in a previous comment, the initiatives to reduce by a quarter point by the Central Bank of Thailand last week did not work at all, on the contrary…
The very next day, the baht was appreciating and broke through the ceiling, exchanging at 36.65 baht to 1 euro, and even dropped to 36.43 two days ago…
So, yes, this economist-expert from Siam Commercial Bank is right to highlight the ineffectiveness and incompetence of the specialists who are bending over the bedside of the Thai economy and depth…
So, one of two things: either we decide to administer antibiotics at horse doses to save the patient 'Thailand' or we continue palliative care until a deep coma…
Will the February elections see a coalition majority that will shake the coconut tree or will it be another version of the same crab soup, in the same pot, with apprentice cooks just capable of messing up a sweet potato puree… ???
When I see the list of candidates from different parties in the February 8 elections, I will lean towards the second solution.
We need to stop these clowns from the Bank of Thailand.
But where did they take their economics courses?
What did they do in American universities during their studies?
It's not that complicated to make things happen:
Ban on buying cryptos in baht and ban on buying gold in baht except for local industrials who justify it.
We start with that and the baht already drops to 35 for 1 USD.
The Cambodian economy depends 60% on mafias that launder their money in gold bought in Thailand.
You cut that and you'll see if THB doesn't drop.
But as these mobsters bribe heavily, we're not about to see the THB drop, and we retirees are losing 15% of our purchasing power since July 2024.
Bunch of corrupt clowns, go.