15 Nov 2019
Financial Markets
The Baht strengthened against the US dollar. Regarded as a safe-haven currency, the Baht rose in line with the JPY amid concerns about the US-China trade talks. The US President Donald Trump said earlier in the week that there was no agreement yet to roll back tariffs on imported goods from China, and the US could impose more tariffs if the talks ended without the first phase trade deal. However, the Baht was later traded in a narrow range as investors awaited developments of the US-China negotiations... Read more
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1 Nov 2019
The Baht traded in a narrow range near THB30.15/USD, which is the strongest level in over six years. The Baht briefly fell early in the week in line with a weaker JPY, which was seen as a safe-haven currency after the US and China signaled that they were close to finalize some parts of their trade deal. However, the Baht strengthened later on the back of the US dollar’s broad sell-offs following the Fed’s decision to cut its policy rate at their third straight meeting to 1.50-1.75%. The US dollar also fell on weaker-than-expected US economic data.... Read more
9 Aug 2019
The Baht briefly fell after the FOMC meeting. The Baht rose early in the week, as the US dollar fell further on weak US Non-farm Payrolls data and concerns over the US-China trade tensions. The Baht extended its gains later in the week, although it fell briefly after the BOT’s MPC unexpectedly cut its policy rate to 1.50%. The Baht was supported by dollar-selling orders from exporters, Thai bond-buying orders from foreign investors, as well as a weaker US dollar. Asian currencies also rebounded somewhat, after falling in line with the Yuan early in the week. ... Read more
31 May 2019
The Baht strengthened, after having fallen earlier in the week. The Baht weakened along with other regional currencies that were pressured by concerns about the trade tension between the US and China. However, the Baht rebounded later in the week on net stock and bond buying orders of foreign investors. Report on the macroeconomic and FX policies of major trading partners released by the US Treasury showed that Thailand was not added in the monitoring list as market participants were concerned before.... Read more
26 Apr 2019
The Baht hit a near 4-month low of THB32.10/USD, before paring losses. The Baht fell in line with net foreign selling orders of Thai bonds and weak regional currencies. The US dollar rose on stronger-than-expected US economic data, and also extended gains against the Euro on the back of concerns about the slower economic prospects in Germany and the Eurozone. However, the Baht pared losses somewhat and rebounded late in the week.... Read more
12 Apr 2019
The Baht pared gains later in the week. The Baht rose early in the week on foreign investors’ net buying orders of Thai stocks, while the US dollar fell on a weak US Factory Orders data for February. Later, the Baht pared gains on net foreign bond selling orders, as well as weak regional currencies, after the IMF cut its global growth forecast to 3.3% this year. The Baht rebounded late in the week in line with the Yuan on the back of a stronger-than-expected Chinese export data for March.... Read more
2 Nov 2018
The Baht strengthened later in the week. The Baht hit a 2-1/2 month low of THB33.32/USD in early week amid the weakening Asian currencies and Yuan on the back of news that the US will escalate its trade dispute with China by imposing tariffs on all remaining imports from China. The US dollar rose further on a strong US Core PCE Price Index report. However, the Baht reversed those losses and strengthened later in the week on net foreign bond buying orders, and a better Thai current account surplus in September. The US dollar also fell, along with the rising risky assets on hopes for the US possible trade deal with China. ... Read more
26 Oct 2018
The Baht weakened and later broke the THB33.00/USD level. The Baht fell on a disappointing Thai export data and hefty net foreign stock selling-orders during the week. Meanwhile, the US dollar rose amid risk aversion, triggered by concerns about the EU’s formal steps to reject Italy's budget and Chinese economic slowdown. The US dollar also gained on stronger-than-expected US pending home sales and durable goods orders reports for September. ... Read more
7 Sep 2018
The Baht traded in a narrow range, but weaker than the previous week. The Baht fell on weak regional currencies that were pressured by sell-offs of emerging market currencies on the back of their fragile economies. Meanwhile, the US dollar was supported by ongoing trade disputes between the US and its key trading partners, i.e., Canada and China. The Baht also weakened, along with net foreign stock selling orders. However, weaker-than-expected US economic data triggered the US dollar sell-offs for position adjustments ahead of the US Non-farm Payroll report. ... Read more
26 Jul 2018
The Baht rose against the US dollar. A stronger Baht was in line with other Asian currencies, while the US dollar faced sell-offs after the US President said that the Fed’s tightening cycle might have impacts on the US economy and the strong US dollar could result in weaker US competitiveness. The US dollar also fell on disappointing US economic data, including Preliminary PMI data for July, and New Home Sales data for June. Meanwhile, the Baht also gained on net foreign stock and bond buying orders.... Read more
6 Jul 2018
The Baht hit over 8-month low of THB33.29/USD. The Baht and regional currencies fell along with risky assets, and Chinese Yuan (although the PBOC signaled to monitor the Yuan movement) amid concern about the international trade situation between the US and China, as US tariffs imposed on imports from China took effective on July 6. Meanwhile, the Baht’s weakness was capped somewhat ahead of the US Nonfarm Payrolls data. ... Read more
29 Jun 2018
The Baht hit over 8-month low of THB33.22/USD. The Baht fell along with Chinese Yuan, most Asian Currencies, and other risky assets amid concerns about the international trade situation between the US and their trading partners, especially restrictions on investment and trade. The Baht was also pressured by net foreign stock and bond selling orders. ... Read more
15 Jun 2018
The Baht hit over 5-month low of THB32.46/USD. The Baht fell on net foreign stock and bond selling orders, while the US dollar rose strongly after the FOMC meeting. The Fed gave a hawkish signal that there would be two more rate hikes later in the year, compared with one hike signaled earlier. The US dollar also rose after the ECB said that their policy rate would be kept at low levels despite the halts of their QE measures.... Read more
4 May 2018
The Baht weakened to nearly THB31.75/USD. It appreciated early in the week, while investors sold the US Dollar somewhat to adjust their positions before the latest Fed meeting. However, the Baht pared those gains and weakened later on Thai bond sell-offs by foreign investors. The US Dollar was also supported by the Fed announcement of the US inflation that was closer to the target.... Read more
27 Apr 2018
The Baht hit a 2-month low. The Baht fell, while the US dollar rose along with the rising US bond yields. US 10-year yield surged to above 3%, the highest level in 4 years. In addition, the weak Baht was also in line with net stock and bond selling orders of foreign investors during the week. ... 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