BANGKOK, Thailand – Krungthai Global Markets strategist Poon Panichphibool announced that the Thai baht opened at 33.67 per USD on October 25, reflecting a slight weakening from yesterday’s close of 33.64. The baht has shown a “sideways up” movement, fluctuating between 33.61 and 33.74 as the USD strengthens, spurred by recent U.S. economic data such as October’s PMI indices and initial jobless claims, both of which outperformed expectations.
Additionally, as the U.S. dollar and 10-year bond yields climbed, gold prices dropped by nearly $20 per ounce, adding to downward pressure on the baht. However, a slight dollar softening allowed gold to rebound to around $2,730–$2,740, helping stabilize the baht’s depreciation. Krungthai expects baht range to hold between 33.60–33.80 per USD.
Market participants are watching key European economic indicators, including Germany’s IFO Business Climate Index and the European Central Bank’s (ECB) inflation outlook. Federal Reserve officials’ statements are also in focus as traders assess potential monetary policy directions. With Japan’s Lower House Election on October 27, Krungthai notes that the yen’s movement post-election typically remains stable unless there are major political or policy shifts.
In the short term, the baht is likely to fluctuate in a sideways trend as U.S. economic outperformance bolsters the dollar, and the baht continues to experience slight depreciation pressure. However, potential rebounds in gold prices amid global uncertainties may curb the baht’s depreciation momentum. The baht may face resistance at 33.85, with the next resistance level around 34.00 if depreciation continues.
