But it's due more to a drastic slowdown in imports than improved exports. The Thai baht is pegged to a U.S. dollar-weighted basket of currencies. So as U.S. rates rise, there is little room for Thai ones to fall. One alternative would be if the deficit dramatically improved. That would reduce the risk premium demanded by investors.
Inflation is no longer a worry.
But high rates are hurting business confidence. Bangkok's SET Index is too heavily weighted toward banks and financial companies. The banks have raised their provisioning levels against non-performing loans. But that cuts into earnings. And because analysts can't predict how big the provisions will be, it's hard to take banks' earnings forecasts seriously.