USD/THB pair likely to trade around 36 by end-2016, says Commerzbank

Thai baht is likely to stay on a weakening trend. Last year, the Thai currency was the third worst performing currency in Asia. It had depreciated almost 9 percent against the US dollar and was behind just the Indonesian rupiah at 10 percent fall and Malaysian ringgit at 19 percent decline.

The Thai baht was mainly weighed on by the Thai central bank’s preference for a weaker THB,  the stronger USD backdrop and persistent political uncertainty given that the authorities have pushed back the timetable for a return to civilian rule to second half of 2017 from February 2016 originally. These factors are expected to continue in the quarters ahead, noted Commerzbank.

“We forecast USD/THB at 36.00 by end-2016”, added Commerzbank.