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28 Aug 2024

Financial Markets

Businesses urged to brace for high forex volatility as the Baht is projected to rebound towards the end of 2024 (Current Issue No.3518 Full Ed.)

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Businesses urged to brace for high forex volatility as the Baht is projected to rebound towards the end of 2024
  • The Baht’s movements have been quite volatile since the beginning of 2024. It  gradually weakened beyond THB37.00/USD at the end of April 2024, before rebounding in July 2024 to below THB34.00/USD.  
  • The Baht is expected to strengthen to THB33.60/USD over the short term as the US dollar continues to face pressure from the potential Fed Funds rate cuts. However, KBank maintains its projection for the Baht as of the end of 2024 at THB34.50/USD, because the Baht is likely to swing in line with new events and economic data.  
  • Amid the Baht's rebound, KResearch assesses that every 1 percent appreciation of the average level for the Baht may have an impact on exporters' revenues by nearly THB100 billion per year, or more than 0.5 percent of the nominal GDP (specifically due to the conversion of foreign currency earnings back into Baht).

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Financial Markets