Baht on High Alert: Will US Election Results Spark Market Volatility Amid Soaring Thai Inflation

InfoQuest News Agency (05 Nov ’24)

A money manager from the Bank of Ayudhya revealed that the baht closed tonight at 33.61 baht / dollar, strengthening from the morning when the market opened at 33.78 baht / dollar The baht strengthened from the morning. During the day, it moved in the range of 33.59-33.80 baht / dollar. while other currencies in the region mixed movement Weakening and strengthening for tomorrow. The factor that will greatly affect the value of the currency is the outcome of the US presidential election. which will gradually begin to recognize the results of the investment Scales in some states This will give the currency an opportunity to vary a lot tomorrow. while in the country Inflation figures for the month of October will be reported by the Ministry of Commerce Tonight, the United States will report important economic figures, namely the Services Sector Index for October. From the Institute for Supply Management (ISM) and the final Service Sector Purchasing Managers’ Index (PMI), October. Money managers expect that the baht will move tomorrow in the range of 33.50 – 33.85 baht / dollar * Important factors – The Yen is at the level of 152.15 ¥ / dollar from the morning at 152.41 ¥ / dollar – The euro on the dollar / euro level from the Morning session at 1.0874 dollar / euro – the SET index closed today at 1,481.67 points, an increase of 18.72 points (+1.28%), trading value approximately 39,319.46 million baht – Summary of trading volume by group Foreigners bought net amount of 1,481.02 million baht – Chairman of the National Shippers Council of Thailand (STN) or the Exporters Council. Confident that this year’s exports will expand more than 2% from the expected 1-2%, with a value of about 290,084 million dollars, or the equivalent of 10 trillion baht, after exports in the first 9 months (January-September 2024) will grow by 3.9% due to the cooperation of the public and private sectors in pushing exports. and benefited from the US-China trade war – The Ministry of Tourism and Sports revealed that Thailand has accumulated a number of tourists. From 1 January – 3 November 2024, a total of 29,080,399 people generated 1,358,087 million baht in income from foreign tourist spending, with the top 5 highest number of tourists including China 5.7 million, Malaysia 4.1 million. People: India 1.7 million people, South Korea 1.5 million people, and Russia 1.3 million people – Thai Bankers Association Prepare to give support measures to reduce the financial burden. for small borrowers and small businesses, including home loans, car loans and loans for small business operators with a low credit limit. It is a measure that will help reduce the burden of installments, payment per installment, and suspend interest payments for a period of time. This will be a temporary measure only. and is in the process of making an official announcement. – The Chinese Prime Minister is confident that China will be able to reach its economic growth target of around 5% this year Supported by the government’s recent announcement of stimulus measures. Ready to send a signal that Additional economic stimulus measures may be announced – Analysts from Mizuho Bank predict that the Yen can fall to ¥160 / dollar if “Donald Trump” wins the US presidential election. which depreciates almost to the lowest level in 38 years tested last month. Last July – the Reserve Bank of Australia (RBA) decided to keep the policy interest rate at 4.35% at today’s meeting. which is a constant interest rate in the 8th meeting in a row, with predictions that Australia’s inflation rate will not return to the middle of the target range of 2-3% until 2026.

By Kasamaphon Kittisamphan/Ratchada Kongkhunthian