BANGKOK, Thailand –– Krungthai GLOBAL MARKETS has projected the Thai baht (THB) to fluctuate within a range of 34.50-35.10 baht per US dollar this week. The baht opened on November 18 at 34.79 baht per dollar, showing a slight appreciation from last week’s close of 34.81 baht per dollar. Over the past week, the baht has moved within a sideways range of 34.76-34.96 baht per dollar, driven by a slowdown in the US dollar’s strength.
Despite stronger-than-expected economic reports, including higher-than-forecast retail sales and the Empire Manufacturing Index, which supported the US dollar, the baht has found some support. This is partly due to a rebound in gold prices (XAUUSD), which has helped stabilize the baht.
Last week, the baht depreciated more than expected due to the strengthening US dollar, the ongoing decline in gold prices, the weakening Chinese yuan (CNY), and foreign asset sales by international investors.
This week, Krungthai GLOBAL MARKETS advises attention to the evolving views of market participants regarding monetary policies of major central banks. Market players are closely watching key economic reports and speeches from central bank officials (Federal Reserve, Bank of England, and European Central Bank), which may provide further clues on future interest rate policies.
The baht’s depreciation momentum may slow down slightly as the US dollar’s strength moderates, but the direction of the baht will depend on the continued movement of gold prices, the Chinese yuan, and foreign investment flows in Thailand.
As for the US dollar, its upward momentum could ease as market participants adjust expectations regarding the Federal Reserve’s rate hikes, possibly reducing their anticipated pace. However, the dollar’s direction will remain highly sensitive to market perceptions of central bank policies, which will likely impact major currencies.
