Strategists warn that a boost from gold prices won’t be enough to protect Thai baht as tariff risks and interest-rate cuts start to bite.
The baht is up around 1.2% against the dollar this year, more than double the gain of other main Asian currencies. A key reason is Thailand’s role as a gold-trading hub.
The baht has a much closer link with gold than most emerging market currencies, with the two prices having a correlation coefficient of 0.57 over the past five years, according to Bloomberg. A coefficient of 1 would mean equal impact.
Source: Bangkok Post
