There is a remarkable strengthening of US dollar versus major currencies at the moment including Thai baht. This is, however, not te dollar rebound many people expect. The current strengh is temporal and based on impression that Fed may pause in cutting interest rates. US in recession which continues deepening and Fed will continue to cut. On the contrary, ECB is still not in cutting mood yet. The current situation presents excellent opportunities for selling dollar on temporal strength. My favorite currency in the long to medium run is Aussi dollar.
I would like to call your attention to spectacular slide of Korean won which lost something around 40 percent versus Jap Yen within the span of several monthes. It is a collapse of Korean won and Thai baht in 1997 which manifested a great crisis in South East Asia. While the current situation is quite different there is a certain similarity in key economic indicators between these two countries.
Do not take wrong. The dollar will rebound when Fed reverse the course and/or ECB starts to cut but it is not on the cards
for quite a while.
A good short term play is Jap Yen which may sterngthen from current levels to 98-99 versus dollar. But in the longer run I definitely prefer Aussi dollar.

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