BANGKOK, Thailand – Thai Baht opened weaker at 34.22 per US dollar on December 18, compared to the previous day’s closing rate of 34.16. The currency traded within a support range of 34.00 and a resistance level of 34.30 against the US dollar.
The depreciation of the Baht comes as the US dollar strengthens against major currencies, driven by rising bond yields. Market concerns over the Federal Reserve (Fed) potentially delaying its rate cuts in 2025 are contributing to the dollar’s gains, despite the expectation that the Fed will lower its benchmark interest rate by 0.25% in its upcoming meeting.
Investors are awaiting a speech from Jerome Powell, Chairman of the Federal Reserve, to gain clarity on the Fed’s interest rate outlook for the coming year, as well as key economic indicators, including GDP growth, unemployment rates, and inflation figures for the US.
Foreign investors were net sellers in Thailand’s bond and stock markets on December 17, with a net sale of 3.8 billion Baht in bonds and 550 million Baht in stocks.
The Thai Baht is expected to trade within a range of 34.00–34.30 per dollar. Market analysts recommend buying the Baht at 34.00 and selling it above 34.25.
