The baht hit its weakest level in more than six months at 36.97 baht per dollar. before returning to the level of 36.94-36.96 baht per dollar. This morning (9.52 a.m.) compared to the market closing level at the end of last week at 36.86 baht per dollar.

Miss Kanchana Chokpaisansin Research executive Kasikorn Research Center stated that the baht weakened following the overall price of gold in the world market. Yuan and Yen, while the dollar continues to gain support due to its safe-haven currency status. and the expectation that the Fed will not be in a hurry to cut interest rates After many officials from the US Federal Reserve or the Fed still expressed concern about inflation. Along with evaluating that US economy There are still good signs of expansion.

For the framework of the movement of the baht today Initial estimate is 36.80-37.00 baht per dollar. The factor that must be followed will be the direction of foreign fund flow. The direction of gold prices in the world market Situation in the Middle Ea
st and the announcement of the Prime Customer Rate (LPR) by the People’s Bank of China.

Mr. Poon Panitchpibun, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank Revealed that there is a chance of continued depreciation, testing the level of 37.00 baht per dollar and the level of 37.25 baht per dollar. This is the weakest point of the baht in 2023. In the past, the baht value was viewed this week at the level of 36.50-37.25 baht/dollar due to the conflict situation in the Middle East. It is still a factor that needs to be watched. In addition, we should wait for the US PCE inflation report as well as the manufacturing and service sector PMI indexes of the US, Europe and Japan.

‘We still consider Transaction flows pay dividends to foreign investors that will reach around 16 billion baht this week. This may be a factor that pressures the fluctuating baht to depreciate. You should wait to follow the assessment of economic trends and monetary policy directions of the Bank of Thailand (BoT) at th
e Monetary Policy Forum seminar. You must wait and watch to see if the bank The country will send a signal about the opportunity to gradually reduce interest rates. Since the June meeting As some market players expect or not,’ Mr. Poon stated.

Krungthai GLOBAL MARKETS maintains its recommendation that market players should choose to use a variety of exchange rate risk hedging tools. Amidst the fluctuation of the baht Including other currencies which was reasonably higher than in the past Market players may choose to use additional tools such as Options or Local Currency along with closing risks through Forward contracts -511 –

Source: Thai News Agency