BANGKOK, Thailand –Thai baht opened at 34.75 per US dollar on November 22, showing a slight depreciation from the previous closing of 34.66. The baht is projected to move within the range of 34.50 to 34.85 per US dollar.
Since last night, the baht has been trading in a sideways movement, weakening slightly as the US Dollar strengthened due to continued selling pressure on European currencies, including the Euro (EUR) and British Pound (GBP). The market’s expectation is that the European Central Bank (ECB) may continue to lower interest rates, while the Federal Reserve may reduce rates less than previously indicated in its September Dot Plot.
Additionally, the Euro and Pound face pressure from concerns over the ongoing Russia-Ukraine conflict, coupled with rising natural gas prices as winter approaches, which are putting further strain on European currencies.
Despite the baht’s recent movement, it has not yet breached resistance levels of 34.70-34.80 per US dollar. Meanwhile, gold prices (XAUUSD) continue to rise, supported by safe-haven demand as geopolitical concerns persist. The Japanese Yen (JPY) also saw an uptick as a safe-haven asset, following a statement by the Bank of Japan (BOJ) Governor, signaling potential future rate hikes due to higher-than-expected core inflation in Japan. This helped to moderate the Dollar’s strength in the market.
As of today’s early session, the Japanese Yen strengthened to 154 JPY per US Dollar after Japan’s core inflation rate hit 2.3%, higher than expected, leading markets to speculate a 63% chance the BOJ will raise rates in its December meeting.
