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Positive domestic sentiment and renewed foreign capital inflows have supported the baht’s recent appreciation against the US dollar, but the currency is expected to remain highly volatile amid ongoing external uncertainties.
Following Thailand’s Feb. 8 election, foreign investors returned as net buyers of Thai equities and bonds, driving the baht below 31 per dollar and briefly to 30.93 — its strongest in two weeks. K-Research said inflows from Feb. 9–12 totaled 32.8 billion baht, a stronger post-election response than in prior cycles, reflecting confidence in the new government and policy continuity.
Domestic optimism and speculation about possible interest-rate cuts have also drawn capital into bonds. However, external drivers — including global market volatility, Fed policy, and shifts in investor risk appetite — continue to pressure the currency. K-Research highlighted that future foreign flows will hinge on government stability, fiscal policy, and global financial conditions, including sovereign risk perceptions. Krungthai Global Markets noted sharp global sell-offs, such as in US AI stocks, can quickly reverse gains; it sees the baht trading roughly between 30.90 and 31.20 per dollar in the near term.