The Thai baht has climbed to levels not seen in more than four years, adding strain on Thailand’s export sector as policy makers and businesses grapple with the implications of the currency’s rapid rise. The baht has been trading around 31.4 to the US dollar this month, a peak not reached since mid 2021, and has strengthened by around nine per cent this year against the dollar, making it one of Asia’s best performing currencies. The move has been fuelled by a softer US dollar, steady capital inflows, record gold prices and strong seasonal tourism receipts, according to market data and reporting. The scale and speed of the appreciation have elevated the issue from a market concern to a political one, placing currency management back on the agenda in Bangkok as officials assess the risks to growth. Thailand’s export industries are feeling the impact as the stronger baht erodes the local currency value of dollar denominated revenues. Manufacturers and traders say margins are being squeezed at a time when global demand remains uneven and competition from regional peers is intense. The currency’s rise has been closely watched by the Bank of Thailand and the finance ministry, both of which have acknowledged concerns from exporters about competitiveness. The strength of the baht this year has stood out in Asia, amplifying pressure on policy makers to respond without triggering instability or capital flight. Agricultural exporters and manufacturers have been among the most vocal. Rice exporters in particular have warned that the stronger currency risks making Thai shipments less attractive compared with supplies from rivals such as Vietnam and India. Electronics, automotive parts and processed food producers have also raised alarms as higher exchange rates compound other external pressures, including tariffs in key markets. Industry groups have stepped up engagement with government officials, arguing that currency volatility is adding another layer of uncertainty to planning and pricing decisions. The Bank of Thailand has indicated it is taking steps to manage the baht’s rapid rise, focusing on curbing excess volatility rather than targeting a specific exchange rate. Measures have included tighter monitoring of foreign exchange transactions linked to gold trading, which authorities say has contributed to sharp movements in the currency. Commercial banks have been instructed to strengthen oversight of large inflows, reflecting concerns that speculative activity could exacerbate swings and undermine confidence. Alongside central bank actions, the government has explored administrative measures aimed at absorbing excess baht liquidity. These include encouraging state owned enterprises to accelerate imports and urging private firms to repay foreign currency debt, steps intended to increase demand for foreign exchange. Officials have framed these moves as part of a broader effort to smooth currency movements while maintaining Thailand’s appeal to foreign investors, a balance that has become more delicate as global financial conditions shift. Tourism, another pillar of the Thai economy, is also exposed to currency dynamics. While visitor numbers have continued to recover, a stronger baht makes Thailand a more expensive destination for international travellers, particularly from price sensitive markets. Industry representatives have cautioned that prolonged appreciation could weigh on spending per tourist, even if headline arrival figures remain healthy. The tourism sector’s importance to employment and regional economies adds to the political sensitivity of the baht’s rise. The currency debate is unfolding against a challenging domestic backdrop. Thailand faces sluggish household consumption, high levels of debt and a fragile recovery in private investment. These factors complicate policy choices, limiting the room for aggressive intervention while heightening the stakes for export performance. Officials have emphasised the need to preserve financial stability, even as calls grow louder for measures to ease pressure on trade exposed sectors. For exporters, the immediate focus is on whether the baht can be prevented from strengthening further. Many firms are stepping up hedging and reassessing pricing strategies as they wait for clearer signals from policy makers. As the baht holds near multi year highs, its impact on Thailand’s trade dependent economy has become a defining issue, shaping business sentiment and policy debate as the country navigates an increasingly uncertain global environment....