A US-Japan joint intervention to stop the yen's slide is among the reasons the baht has appreciated beyond 33 baht to the dollar, economists say, noting that the Thai currency is likely to continue gaining against the greenback in the near term.

Amonthep Chawla, executive vice-president and head of research at CIMB Thai Bank, said recent weaker-than-expected US employment data have eased concerns that the Federal Reserve will raise interest rates in September.

The market had previously priced in the possibility of a rate hike next month, but softer economic data have prompted investors to reassess their expectations.

Consequently, some funds that had previously moved into US assets have started flowing back into emerging markets, providing support for emerging-market currencies, including the baht.

According to Kasikorn Research Centre (K-Research), the baht was traded in a range of 32.99–33.01 to the dollar early yesterday, compared with Friday's close of 33.05.

The Thai currency appreciated to its six-week high of 32.87 to the greenback on Friday, as the lower probability of a US rate hike in September put pressure on the dollar, said Kanjana Chockpisansin, head of research for the banking and financial sector at K-Research.

Besides, the situation in the Middle East has eased recently as traders watch for progress in US-Iran talks that could pave the way for a deal to secure passage through the Strait of Hormuz.

Meanwhile, the yen has bounced back to 158.52 per dollar, from roughly 164, a multi-decade low hit late last month, as the US-Japan intervention helped to prop up the Japanese currency.

"The baht is likely to continue its appreciation in the near term, potentially hitting 32.70," said Ms Kanjana.

Mr Amonthep, meanwhile, expressed concerns over the US-Japan joint intervention to stop the yen's slide.

Japan has intervened in the foreign-exchange market in the past to support the yen and has sought cooperation from other major economies. However, currency intervention alone may have limited effectiveness if underlying economic and monetary policy factors continue to weigh on the yen.

If Japan responds to stem the yen's weakness by selling US Treasuries, pushing US yields higher, the consequences could directly affect the US financial system and economy.

"The key question is whether Japan can contain the pressure within its domestic financial system or whether continued weakness in the yen and rising JGB yields could become a catalyst for broader volatility in US Treasury markets and the global financial system," said Mr Amonthep.