FX.co ★ Thai Baht Rises on Bhumjaithai Party Election Win

The Thai baht strengthened 1.3% to 31.2 per dollar on Monday, rebounding from last week’s losses and reaching its highest level in more than a week, as market sentiment improved following the Bhumjaithai Party’s decisive election victory. The ruling conservative Bhumjaithai Party secured its first general election win of the century and is poised to take 191 of the 500 seats in the House of Representatives, nearly triple its 2023 result. The outcome has bolstered investor confidence, as a strong performance by Prime Minister Anutin Charnvirakul and his likely coalition partners lowers the risk of political deadlock or instability. It also supports expectations of policy continuity, including the extension of the party’s social handout programs and the passage of a new budget. Meanwhile, the pro-democracy People’s Party, which had led in pre-election polls, is on track to win 115 seats.