Baht Depreciates Slightly Against Dollar, Forecast Points to Stability
The baht opened this morning at 35.41 baht / dollar, with a slight depreciation from the previous day’s close of 35.39. ‘Krung Thai’ estimates today’s range to be 35.20-35.70 baht / dollar.
In analyzing the trend of the baht on August 16, 2023, Mr. Poon Panichphiboon, money market strategist at Krungthai GLOBAL MARKETS, Krung Thai Bank, suggests that the baht may continue to face some pressure due to the dollar’s recent appreciation.
This situation arises as market players express uncertainty over the possibility of the United States Federal Reserve (Fed) raising interest rates, coupled with gold prices still hovering near the key support zone. Consequently, some players in the market have turned to buying gold gradually during downturns.
However, it is estimated that the baht’s depreciation momentum could begin to taper off as certain market players, particularly exporters, wait for opportunities to gradually sell the dollar. Furthermore, the selling pressure on Thai assets from foreign investors is expected to decrease once there is more clarity regarding the formation of the Thai government.
The predicted resistance zones for the baht against the dollar are at 35.50 baht and 35.75 baht, respectively. The depreciation cycle of the baht is anticipated to conclude within the range of 35.85-36.00 baht per dollar, aligning with our previous estimates since June 28.
Nevertheless, it is important to note that during this period, all assets remain vulnerable to high volatility, primarily due to uncertainties surrounding monetary policy direction and concerns about the Chinese economy’s recovery prospects. Consequently, it is advisable for businesses to employ various hedging tools, such as options, to enhance their efficiency in mitigating exchange rate risks.
For today’s baht outlook:
- Expected range: 35.30-35.55 baht per dollar
- Factors to consider include the latest Fed meeting report and gradual analysis of the baht’s performance within the range of 35.20-35.70 baht per dollar.
As the baht continues to navigate these challenging dynamics, investors and market participants are encouraged to stay vigilant and closely monitor developments to inform their decision-making processes.
The baht opened this morning at 35.41 baht / dollar, ‘slightly depreciating’ from the previous day’s close of 35.39. ‘Krung Thai’ estimates range today at 35.20-35.70 baht / dollar.
Mr Poon Panichphiboon, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank The trend of the baht on August 16, 2023 revealed that the baht may still face some pressure on the weaker side. after the dollar turned around to appreciate
This is a result of market players’ uncertainty about the possibility of raising interest rates by the United States Federal Reserve (Fed), while gold prices are still swinging near the key support zone. Causing some players to gradually buy gold at the time of the downturn
However, we estimate that the depreciation momentum of the baht may begin to slow down after we find out that there are some players in the market Especially those exporters They are all waiting to sell the dollar gradually. Meanwhile, selling pressure of Thai assets by foreign investors is likely to slow. If the formation of the Thai government is more clear
We estimate the zone at 35.50 baht per dollar. This is the first resistance zone and the zone of 35.75 baht per dollar. is the next resistance zone. The baht may end the depreciation cycle at around 35.85-36.00 baht per dollar. from what we have estimated since June 28
However, during this period, we think All assets still face high volatility. o uncertainty about the direction of monetary policy Concerns about the prospects for the recovery of the Chinese economy. cause us to keep the advice and Entrepreneurs should use a variety of hedging tools such as options to increase efficiency when hedging against exchange rate risks.
Check out the baht frame today. It is expected to be at 35.30-35.55 baht per dollar. In the period before recognizing the latest Fed meeting report and looking at the baht range in the range of 35.20-35.70 baht per dollar. During the gradual recognition of the results of the latest Fed meeting
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