26 Jul 2019
Financial Markets
The Baht weakened against the US dollar. The Baht fell early to mid week amid expectations that the Fed might not aggressively cut its policy rate in the near future. The Baht’s weakness was also in line with net foreign bond selling orders. Meanwhile, the US dollar rose on the budget deal between the Congress and President Trump’s administration, as well as the IMF’s upward revision to the US 2019 GDP outlook. Also, market participants became more cautious towards the Fed’s stance at its meeting scheduled for the end of this month after US economic data came out stronger than expected. ... Read more
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10 May 2019
The Baht tested the THB31.55/USD level, an over 1-month high, in late week. The Baht rose early in the week amid heightened tension between the US and China on their trade deal. In addition, there were short-covering orders, as Thai financial markets reopened after long holidays. The Baht weakened briefly due to the BOT’s MPC meeting result, but rebounded to an over 1-month high later in the week, as the US dollar fell on weak economic reports, and cautious sentiment ahead of the final US-China trade talks.... Read more
3 May 2019
The Baht fell slightly, but still traded within a narrow range around THB32.00/USD. The Baht edged up early in the week, as the US dollar barely drew any support ahead of the FOMC meeting. The Baht weakened later in the week, as the US dollar rose after the Fed gave no signal to cut its policy rate in the near future. In addition, the Baht fell on net foreign bond selling orders. ... Read more
15 Mar 2019
The Baht edged up against the US dollar. The Baht rose slightly early in the week while the US dollar fell on weaker-than-expected US CPI and PPI reports for February. The soft US inflation figures reinforced expectations that the Fed’s policy rate-hike pace would be slower this year. However, the Baht weakened later on the back of net foreign selling orders of Thai shares and cautious sentiment toward domestic factors. The Baht rebounded later in the week along with regional currencies while market participants awaited the upcoming FOMC meeting on March 19-20.... Read more
8 Feb 2019
The Baht traded in a narrow range, before weakening later in the week. Although the Baht moved within a limited range, it had a slightly strong bias on the back of net foreign stock and bond buying orders. However, the Baht fell later in the week on the BOT’s signal to step into the market to lessen the abnormal movement. The Baht’s weakness was also in line with net foreign stock and bond selling orders. ... Read more
4 Jan 2019
The Baht hit a 7-month high of THB32.00/USD. A stronger Baht was due to the US dollar’s sell-offs amid concerns about a partial government shutdown. Meanwhile, weaker-than-expected US economic data hurt the US dollar sentiment and reinforced worries about uncertain US interest rate hike cycle. The Baht pared losses later in the week, along with a weaker Yuan after the PBOC lowered RRR by 1.0% to support the Chinese economy.... Read more
14 Dec 2018
The Baht rose, but within a narrow range. The Baht rose slightly in line with the Yuan and other Asian currencies amid easing concerns about the US-China trade tension after news reported that China could undo the tariffs on American-made cars. However, the Baht’s upside gains were capped later while the US dollar rebounded after the ECB cut its economic growth forecasts for this year and next year despite the confirmation of a halt for asset-purchase program at the end of this month as planned. In addition, the US dollar gained on short-covering ahead of the FOMC meeting.... Read more
17 Aug 2018
The Baht rose late in the week. The Baht fell briefly early of the week, after concerns about the Lira crisis triggered sell-offs of emerging-market assets, Asian currencies, and the Baht. However, the Baht later pared those losses and recovered on the back of the rebounding Yuan and other Asian currencies, helped by optimism about the U.S.-China trade talks. In addition, the Baht rose on net foreign bond buying orders during the week. ... Read more
22 Jun 2018
The Baht broke the THB33.00/USD level to hit over 7-month low. The Baht fell along with net foreign stock and bond selling orders, while the US dollar rose further on the Fed Chairman’s remarks about more interest rate hikes in the coming months. Meanwhile, concerns about the international trade situation between the US and their trading partners also triggered sell-offs of risky assets, and affected sentiment of Asian currencies. ... Read more
8 Jun 2018
The Baht fell later in the week. The Baht edged up early- to mid-week in line with strong regional currencies, net foreign bond buying orders, and the US dollar sell-offs, especially against the Euro that was supported by expectation for the ECB’s signals to terminate their QE program by the end of this year. The Baht, however, reversed those gains and later fell in late week on the back of the US dollar short-covering ahead of the G-7 schedule and the FOMC meeting on June 12-13.... Read more
11 May 2018
The Baht broke the THB32.00/USD to hit a 4-month low of THB32.22/USD. The Baht fell, while the US dollar extended gains on expectations of the Fed’s rate hikes, boosted by surging global oil prices and higher inflationary concerns. However, the Baht pared those losses later in the week, as the dollar faced sell-offs on a weaker-than-expected US CPI report. ... Read more
20 Apr 2018
The Baht fell slightly against the US Dollar, but its movement overall remained within a narrow range all week. The baht fell along with weakening regional currencies, while the US Dollar rose on higher US Treasury yields after Fed officials remarked that the US inflation rate would likely increase to the Fed’s target this year. The weaker Baht was also in line with net foreign bond selling positions during the week. ... Read more