BANGKOK, Thailand – The Thai baht opened at 32.92 baht per US dollar, marking a significant strengthening from Friday’s close at 33.03 baht on September 23. This is the strongest the baht has been in the past 19-20 months, driven by a surge in global gold prices and expectations that the Bank of Thailand’s Monetary Policy Committee (MPC) may hold off on cutting interest rates in its upcoming meeting.
Domestically, key factors to watch today include foreign capital flows, particularly investments in the bond and stock markets, as well as gold exports, which could further impact the baht’s movement.
According to a financial executive from Krungsri Bank, the baht is expected to trade between 32.80 and 33.05 baht per US dollar throughout the day. The currency’s continued strengthening defies global market trends, as other currencies like the yen and euro have not seen similar movement.
Meanwhile, gold futures in New York surged above $2,600 per ounce for the first time, buoyed by lower US interest rates and rising geopolitical tensions in the Middle East. This uptick in gold prices, alongside a stable baht, has played a pivotal role in the baht’s recent appreciation.
International factors affecting the market today include the release of Purchasing Managers’ Index (PMI) data from several countries, as well as the Chicago Fed’s National Activity Index for August, which will offer further insights into the US economy’s health.
