The baht is expected to weaken over the next few weeks amid rising global trade tensions following the recent US decision to increase tariffs on aluminium and steel imports to 25%.
On Tuesday the baht opened at 33.96 per US dollar, slightly appreciating from Monday's close of 33.91, before weakening past 34 baht during the day, tallying 34.07 per dollar as of 4.30pm.
According to Poon Panitchpibun, a money market strategist at Krungthai Global Markets, the baht depreciated beyond 34 per dollar after US President Donald Trump announced a tariff hike on steel and aluminium imports to a flat 25% on Monday.
Trump signed proclamations raising the tariff on aluminium to 25%, up from 10%, while also removing country-specific exemptions, quota agreements, and numerous product-specific tariff exclusions for both metals.
A White House official confirmed the new measures would take effect on March 12.
A stronger US dollar driven by tariff measures has pressured the baht, said Mr Poon. After opening at 33.89 on Monday, down from last Friday's close of 33.64, the baht has continued to weaken amid growing uncertainty.
"If the baht continues to depreciate steadily and clearly breaks through the resistance level at 34-34.10 per dollar, it could test the next resistance zone at 34.20 per dollar," he said.
Mr Poon said the baht could remain volatile, depending on US trade policies and economic data, though the global surge in gold prices has helped mitigate baht depreciation. However, a market correction in gold prices is possible in the short term after repeated highs, he said.
Kanjana Chockpisansin, head of research for the banking and financial sector at Kasikorn Research Center (K-Research), said the baht weakened past 34 per dollar on Tuesday, reaching its lowest level in a week.
According to Ms Kanjana, the baht's depreciation aligns with the broader weakening trend of regional currencies, driven primarily by a stronger US dollar amid trade policy shifts.
With US trade tensions expected to escalate further, she said monitoring of upcoming tariff measures is necessary.
Given this environment, Ms Kanjana said the US Federal Reserve may delay its policy rate cuts, further supporting the dollar's appreciation against the baht.
In the near term, K-Research forecasts the baht to trade within a range of 33.85-34.15 per dollar.
