Bank of Ayudhya Predicts Baht Movement and Regional Currency Trends
The Bank of Ayudhya has projected that the baht will fluctuate between 35.45-36.25 baht per US dollar in the coming week. In light of this, it’s crucial to monitor US retail sales inflation for the month of October. The recent reversal of the baht’s appreciation is a notable development in regional currency movement statistics, and experts are eager to understand the factors driving this shift.
Ms. Rung Sanguanruang, Director of Business Promotion and Supervision at Global Markets Bank of Ayudhya, shared insights with Nation Online regarding the baht’s upcoming movement and the key factors to watch out for. Inflation and retail sales data from the US in October are expected to have a significant impact on the future interest rate outlook of the US Federal Reserve, particularly in light of statements from Fed Chairman Jerome Powell signaling a potential tightening of interest rate policy to manage inflation risks.
Additionally, concerns have been raised about the potential impact of a planned issuance of a 500,000 baht loan bill for a digital wallet ancillary project, which could lead to an increase in public debt. While the government remains confident in its ability to maintain financial discipline, this development is being closely monitored.
The baht’s recent strength has been attributed to several factors. Market sentiment suggests confidence in a prolonged but contained conflict, while speculation on the future trajectory of Fed interest rates has also played a role. Foreign investors have shown interest in Thai bonds, purchasing a total of 13.4 billion baht, while also selling Thai stocks worth a net total of 7 billion baht.
The Bank of Ayudhya estimates that next week the baht will move within a range of 35.45-36.25 baht per US dollar. Keep an eye on US retail sales inflation in October. Regional currency movement statistics revealed: The baht has reversed its appreciation Why? Let’s have a look.
Ms. Rung Sanguanruang, Director of Business Promotion and Supervision, Global Markets Bank of Ayudhya revealed to Nation Online baht next weekMoves in the range of 35.45-36.25 baht per US dollar. The factors that need to be followed are Inflation and retail sales dataUS October This will affect the US Federal Reserve or Fed interest rate outlook in the future.Jerome Powell Fed Chairman signals tightening of interest rate policy This is because they do not want the financial conditions to ease too quickly. Because it increases the risk of inflation returning.
Regarding the plan to issue a loan bill of about 500,000 baht to be used in the ancillary project. digital wallet it will do Public debt increase even though the government is confident that it can continue to maintain financial discipline.
forCurrency movements in the regionDuring 1 November – 10 Nov. Most currencies have been found to appreciate. Led by Won-South Korea 2.74%, followed by Peso-Philippines 1.39%, Rupiah-Indonesia 1.29%, Dong-Vietnam 0.87%, Ringgit-Malaysia. 0.85% Dollar-Singapore 0.73% Baht-Thailand 0.48% Yuan-China 0.33% Dollar-Taiwan 0.31% except Rupee-India 0.03% devaluation
This month the baht has been grouped with regional currencies but volatility is expected to remain high.The reason why the baht is strong is
The market thinks the war may last but not spread.
As for Fed interest rates I think the uptrend is over. But what the Fed chairman has warned about is that he won’t be cutting interest rates anytime soon.
Foreign investors bought bonds worth a total of 13.4 billion baht. Selling Thai stocks for a net worth of 7 billion baht
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