BANGKOK, Thailand – The Thai baht opened the market on Nov 21 at 34.64 per US dollar, slightly stronger than the previous day’s closing level of 34.70. The trading range for the day is expected to be between 34.50 and 34.75 baht per dollar.
The baht’s appreciation comes amid growing speculation that the US Federal Reserve may slow down its interest rate cuts, with the possibility of fewer reductions than previously projected in its September Dot Plot.
Key Factors Influencing the Baht Today:
- Gold Prices Surge: Rising uncertainty over the escalating Russia-Ukraine war has boosted gold prices by approximately $30 per ounce, reaching $2,640-$2,650 per ounce, providing indirect support to the baht.
- Safe-Haven Demand: A spike in demand for safe-haven assets like gold and the Japanese yen (JPY) has slowed the yen’s depreciation, currently trading near 156 yen per dollar.
- Dollar Movement: Profit-taking on long USD positions has limited the dollar’s gains, despite overall market confidence in the Fed’s cautious approach to rate cuts.
While the baht has shown resilience, global financial markets remain sensitive to geopolitical developments and potential fluctuations in commodity prices, particularly gold, which could further impact the currency.
