Thai Baht Appreciates to 32.39 Baht/Dollar, Strongest in 31 Months

A money manager from the Bank of Ayudhya revealed that the Thai baht appreciated to 32.39 baht/dollar, its strongest level in 31 months, from the market opening at 32.46 baht/dollar. The baht moved sideways throughout the day, ranging from 32.38 to 32.49 baht/dollar.

The baht strengthened in line with most currencies in the region, with the yen strengthening significantly in the afternoon after the results of the Liberal Democratic Party (LDP) presidential election were announced.

Foreigners sold Thai bonds worth 8,500 million baht, with the baht at 32.39 baht/dollar considered the strongest in 31 months or since February 2022, according to a money manager.

Market participants are eagerly awaiting the US August Personal Consumption Expenditure (PCE) price index, which the Federal Reserve (Fed) will use to assess inflation.

The baht’s moving range on Monday is estimated to be 32.25-32.50 baht/dollar, according to a money manager.

The Thai baht spot rate is set at 32.4356 baht/dollar.

Key Factors Affecting the Baht

• The yen strengthened to 143.01 yen/dollar from 145.47 yen/dollar in the morning.
• The euro was at $1.1140/euro from the morning level of $1.1690/euro.

Upcoming Events

The Bank of Thailand (BoT) will hold an event to launch the project “Your Data: Your data to financial services that answer the question” on October 3, 2024, with Deputy Prime Minister and Minister of Finance Pichai Chunhavajira and BoT Governor Suthiwat Narueput.

The BoT will also discuss the rapidly appreciating baht and the inflation target framework with relevant parties next week.

Tourism and Economy

Minister of Tourism and Sports expects income from tourism this year to be in line with the target of 3.5 trillion baht, despite the flood situation in many areas and the strengthening baht leading to flight cancellations.

Australia’s Finance Minister praised China’s new economic stimulus efforts, calling it a welcome step for both countries and the global economy.

Global News

Former Japanese Minister of Defense Shigeru Ishiba won the election for president of the Liberal Democratic Party (LDP), defeating Sanae Takaichi, the Minister for Economic Security, and is expected to become Japan’s next Prime Minister.

Japan’s National Statistical Office revealed that the core inflation rate (Core CPI) in Tokyo reached the Bank of Japan’s (BOJ) 2.0% target in September, with the Core CPI index excluding fresh food prices.

By Papassorn Ongpichetmetha/Ratchada Kongkhunthian