An interest rate hike of at least 0.5% by the Bank of Thailand's Monetary Policy Committee (MPC) tomorrow would be enough to shore up the baht, which has depreciated by 11.5% against the greenback this year to date, analysts said.
Economists forecast the value of the baht could plunge to 38 to the US dollar this year, mainly attributed to a stronger dollar as the Federal Reserve pursues a hawkish monetary policy.
RECAP: Asian markets sold off sharply on Friday and Europe followed as investors braced for a hefty US rate hike next week amid growing concerns of a global recession following warnings from the World Bank and the International Monetary Fund.