Gold’s Grip on Thai Baht Loosens After Government Warning

An employee counts 1,000 baht banknotes at a currency exchange store in Bangkok, Thailand.

Photographer: Dario Pignatelli/Bloomberg

Gold’s impact on Thailand’s currency has fallen to its weakest level in almost two years, a sign that policymakers’ efforts to curb the baht’s gains may finally be taking hold.

The baht’s 60-day correlation with bullion dropped below 0.43 earlier this week, the lowest since Nov. 2023. The 30- and 45-day correlations, which reflect near-term movements, have also slid toward their lowest levels since February, according to data compiled by Bloomberg.