Baht Takes a Hit: Krungthai Reveals Shocking Opening Value of 33.40 as Depreciation Gains Momentum
Baht Value Opens at 33.40, Weakened from Previous Day’s Closing Level
According to Mr. Poon Panichphibun, money market strategist at Krungthai GLOBAL MARKETS, Krung Thai Bank, the baht value opened at 33.40 baht per dollar this morning, weakened from the previous day’s closing level of 33.26 baht per dollar.
Baht Framework and Volatility
The baht framework is expected to be at the level of 33.30-33.60 baht/dollar. The baht moved quite volatile last night, with a moving range of 33.06-33.41 baht per dollar, but in general, it is in a weakening direction, approaching the first resistance zone of 33.40-33.50 baht per dollar.
FOMC Meeting and Interest Rate Cut
After the FOMC meeting, the Fed voted unanimously to cut interest rates by -50bps to the level of 4.75% -5.00% as expected by the market. However, the baht has continued to depreciate during the period the market gradually accepted the statement from Fed Chairman Jerome Powell and forecasts of the economic outlook of the United States.
BOE Meeting and Interest Rate Decision
Today, the market will be watching the results of the Bank of England (BOE) meeting, where it is estimated that the BOE will maintain the policy interest rate at the original level of 5.00%. However, the BOE may send signals ready to proceed with further cuts in the interest rate, which could put pressure on the British pound (GBP) to risk weakening somewhat.
US Economic Data and Market Trends
Market players will be waiting for reports on US economic data, such as the number of people applying for unemployment benefits (Unemployment Claims) and economic indicators from different branches of the Fed. This data will assist in evaluating economic trends and the direction of the Fed’s monetary policy.
Baht Value Trend and Depreciation Momentum
The depreciation momentum of the baht has started to gain strength again after the Fed did not show an acceleration in cutting interest rates as expected by the market. This caused the dollar to strengthen again, putting pressure on gold prices to shrink. The baht may weaken somewhat, but the baht’s depreciation may be limited around the important resistance zone of 33.50 baht per dollar.