Baht Opens Strong Against the Dollar
By Financial Correspondent
Mr. Poon Panichphibun, money market strategist at Krung Thai Bank, has revealed that the baht opened this morning at 35.03 baht per dollar, a slight appreciation from the previous day’s closing level of 35.13 baht per dollar. Panichphibun forecasts that the baht is expected to trade within the range of 34.90-35.15 baht per dollar, citing factors such as the gradual depreciation of the dollar and the flow of gold profit selling transactions.
Despite the baht’s slight strengthening, Panichphibun believes that its appreciation may begin to slow down as it approaches the important support zone of 35.00 baht per dollar. He also points to the flow of foreign investor fund outflows from the Thai capital market, contributing to the potential downward pressure on the baht. Additionally, the volatility in the global financial market could lead to a reversal of net purchases to net sales by foreign investors in the Thai stock market.
Furthermore, the price of gold, currently hovering around $2,010 per ounce, is a factor supporting the baht’s appreciation. Market players are expected to continue gradually selling gold at a profit, which will help limit the baht from depreciating beyond the resistance zone of 35.30 baht per dollar.
Looking ahead, market players are eagerly awaiting the Consumer Confidence Index report from the US Conference Board and statements from Fed officials. In Europe, attention will be focused on the statement from the President of the European Central Bank (ECB) regarding the economic outlook of the Eurozone and the direction of policy interest rates.
Mr Poon Panichphibun, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank, revealed that the baht opened this morning (28 November 2023) at a level of 35.03 baht per dollar. “Appreciated” from the previous day’s closing level of 35.13 baht per dollar. and look at the baht frame today It is expected to be at the level of 34.90-35.15 baht / dollar during the previous night. The baht moved to strengthen slightly. (Rising in the range of 35.02-35.14 baht per dollar) after the baht continued to strengthen during the day more than expected. (We estimate that the baht may not strengthen beyond the zone 35.30 baht per dollar) with factors that support the appreciation coming from the gradual depreciation of the dollar. Including the gold profit selling transaction flow. after the price of gold (The COMEX gold contract is to be introduced in December) has continued to rise and stabilize above the level of 2,010 dollars per ounce. This followed a drop in US 10-year bond yields and the dollar, However, the baht was unable to appreciate more than 35.00 baht per dollar amid the flow of dollar purchases at the end of the month by entrepreneurs.
About the trend of the baht value Although the baht continues to strengthen More than estimated, but we believe that the momentum of the appreciation of the baht may start to slow down somewhat. Approaching the important support zone of 35.00 baht per dollar that we consider The baht may face some downward pressure. From the transaction flow, buy dollars at the end of the month. (Some market players may wait to buy around the 34.80-34.90 baht zone per dollar.) At the same time, foreign investor fund flows are still having a net outflow from the Thai capital market. On the bond market side, we believe foreign investors may wait for the moment when Thai bond yields fall in line with US bond yields. Gradually sell to make a profit And foreign investors may not be in a hurry to adjust their holding positions. Until the results of the Monetary Policy Committee (MPC) meeting are known tomorrow. On the stock side the atmosphere in the global financial market has not returned to progress and is clearly exposed to risks. Makes us see that the flow of foreign investors’ funds in the stock market in Thailand will remain volatile. (Net purchases may be seen to reverse net sales).
In addition, we estimate that as long as the price of gold continues to fluctuate around the zone of 2,000 dollars per ounce or above, it will allow market players to gradually sell gold at a profit. As a result, the baht will still have a flow of transactions to sell and make a profit Gold is a factor that supports the appreciation. (This will help limit the baht from depreciating beyond the resistance zone of 35.30 baht per dollar. It is easily reached.)
For today, market players will wait and follow. Consumer Confidence Index report from the US Conference Board, including statements from Fed officials.
On the European side, market players will wait to follow the statement from the President of the European Central Bank (ECB) on how he will change his view on the economic outlook of the Eurozone and the direction of policy interest rates.
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