2025-02-27
Here is a summary of how some of the most important currencies have performed against the Thai baht (THB) during the past week.
| Currency | Buy Feb 19 | Buy Feb 26 | Change (%) |
|---|---|---|---|
| USD | 33,5131 | 33,6358 | + 0,37 % |
| GBP | 42,0698 | 42,3512 | + 0,67 % |
| EUR | 34,8563 | 35,1282 | + 0,78 % |
| SEK | 3,1108 | 3,1511 | + 1,29 % |
Comprehensive analysis
Over the past week, all analyzed currencies have strengthened against the Thai baht. The Swedish krona (SEK) has had the largest increase with +1,29%, followed by the euro (EUR) by +0,78%. Also the British pound (GBP) and the US dollar (USD) has strengthened somewhat.
Individual analysis
- USD/THB: The dollar has increased by +0,37%, which may be an effect of increased demand for safe assets following uncertainty in global financial markets.
- GBP/THB: The pound has strengthened by +0,67%, likely due to positive economic prospects for the UK and stabilizing financial indicators.
- EUR/THB: The euro has increased by +0,78%, which can be linked to positive inflation figures from the eurozone and strengthened confidence in the European economy.
- SEK/THB: The Swedish krona has had the largest increase of +1,29%. This may be due to a stronger Swedish economy and expectations of a continued stable interest rate policy from the Riksbank.
Impact of the policy rate cut in Thailand
On 26 February 2025, the Bank of Thailand (BoT) decided to lower its policy rate by 0,25 percentage points, from 2,25% to 2,00%. The decision was made by a 6–1 vote within the Monetary Policy Committee, with one member voting to keep the rate unchanged.
This rate cut was motivated by weaker-than-expected economic growth, affected by structural impediments in the manufacturing industry and increased competition from imported goods. The central bank also noted increased risks linked to global trade policy uncertainties.
Despite signs of economic recovery in late 2024 and inflation within the target range of 1-3%, the central bank deemed a rate cut necessary to further support the economy. This decision came after calls from the Thai government to cut rates to ensure inflation remains within the desired range.
How could this affect currencies?
A cut in the policy rate can generally weaken the Thai baht in the short term, as lower interest rates make it less attractive to hold baht-denominated assets. It can also increase demand for foreign currencies such as USD, EUR and GBPWe have already seen some strengthening of these currencies against THB during the week, but it remains to be seen whether this trend will continue depending on market reactions and future economic signals from Thailand.
For more detailed information, you can visit the Bank of Thailand's official website: Bank of Thailand
Why is our course different from Google and Wise?
Many people compare our reported rate to the rates shown on Google or Wise, where SEK/THB may be higher than the one we report. This is because:
- We use Bank of Thailand official buying rate for digital transfer, which is the rate actually used in transactions within Thai banks.
- Google and Wise often show a theoretical 'mid-market rate', which is an average interbank rate without regard to spread or actual transaction costs.
- The rate we report is the most realistic rate for people sending money or exchanging currency within Thailand.
Which course presents Thailand Info and why?
For our currency updates we use the purchase price for digital transferThis is the rate most relevant to tourists and expats exchanging or sending money to Thailand via financial services.
Summary
The foreign exchange market continues to be affected by global economic factors, including interest rate decisions and inflation. Thailand Info follows these changes and updates weekly with the latest analyses to provide a clear picture of the trends.
Follow our weekly currency analyses to make better financial decisions.
- Previous weeks:
Source
Exchange rates taken from Bank of Thailand.
Disclaimer:
The exchange rates in this report are taken from credible sources and are intended for informational purposes. Thailand Info is not responsible for any decisions made based on the information in this article. Rates may vary and it is recommended to double check with current market data or your bank before making any transactions.
Text: The editorial staff
Image license: TheDigitalArtist, Pixabay, original image