Asia’s Worst Currency May Extend Fall on Exposure to Oil Shock

A historic surge in oil prices is exposing the fragility of import-dependent Thailand, compounding pressure on an already weakening currency and raising the risk of capital flight, analysts say.

The baht has dropped more than 5% this month, the worst performance among Asian peers. Strategists at Kasikornbank Pcl see it weakening a further 2% from its current level of 32.8 per dollar by midyear, with rising energy import costs and seasonal dividend repatriation likely to weigh on the currency.