From farms and factories to hotels, Thai businesses are feeling the bite of a strong baht, which is eroding export margins and raising fears that holidaymakers will seek better value destinations elsewhere in Asia.
The surging currency has added to the pile of problems for Thailand’s economy, which has slowed after two years of political instability.
The baht has gained more than 8 per cent against the US dollar this year, rising from 34 to the dollar on January 1 to a high of 31.70 on September 9 before easing back to about 32.40.
The appreciation has trimmed the value of the country’s exports, just as bruising 19 per cent tariffs imposed by Washington start to be felt.
Thai prime minister to dissolve parliament by end of January
Thai prime minister to dissolve parliament by end of January
Peyton Enloe, an American exporter of Thai farm produce, said the baht’s strength had made contracts less profitable and business planning more uncertain.
