Commerzbank’s FX analysts flag that USD/THB slipped to 32.55 on portfolio inflows, even as Thailand’s April trade deficit widened to a record USD10.0bn. Authorities warned the Baht could stay under pressure if strong imports persist, with the currency already down 3.2% versus the Dollar year-to-date despite stronger AI-related export growth.

Record deficit weighs on Thai Baht

"April trade deficit widened to USD10.0bn (Bloomberg consensus: USD5.3bn) vs USD3.3bn in March, marking the widest deficit on record and the seventh consecutive monthly deficit."

"Nantapong Chiralerspong, the Director-General of the Trade Policy and Strategy Office, warned that the Thai Baht (THB) could remain under pressure if strong imports continue to widen the trade deficit."

"The government maintained its base-case forecast for exports to grow 3% this year, with a worst-case scenario of -3% and a best-case scenario of +8%."

"Nonetheless, THB has steadily weakened since mid-April on higher global oil prices and strong demand for USD."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)