BANGKOK, Thailand – The Thai baht strengthened to its highest level in 13 months, reaching 33.84 baht per U.S. dollar before closing the domestic market at 33.88 baht per dollar on August 30. This marks an appreciation compared to the previous day’s close of 33.94 baht per dollar. Ms. Kanjana Chokpaisansilp, Research Executive at Kasikorn Research Center, noted that the baht traded within a narrow range throughout the day but gradually appreciated following the offshore yuan’s strength in the afternoon. Additionally, the U.S. dollar lacked support as markets awaited key inflation data from the U.S., including the PCE Price Index and Core PCE.
Foreign investors sold a net total of 3,184.24 million baht in Thai stocks and 3,181 million baht in Thai bonds, indicating a significant outflow.
Looking ahead, the baht is expected to trade within a range of 33.50-34.50 baht per dollar during the week of September 2-6. Key factors to watch include Thailand’s August inflation figures, signals regarding the new government’s economic policies, foreign capital flows, and global gold prices. Important U.S. economic data, such as the PMI and ISM indices for the manufacturing and service sectors, private sector employment, non-farm payrolls, the August unemployment rate, job openings, labor turnover, July factory orders, and the Federal Reserve’s Beige Book report, will also be closely monitored. Additionally, the market will keep an eye on the August PMI data for the manufacturing and service sectors in Japan, China, the UK, and the Eurozone.
