26 May 2023 Financial Markets Baht’s volatility: Markets await assessment on Thai politics and US interest rate outlook (Current Issue No.3411 Full Ed.) คะแนนเฉลี่ย คะแนนเฉลี่ย 5 stars 4 stars 3 stars 2 stars 1 star The Baht has become volatile within a wider range since early 2023 amid uncertainties surrounding three external and internal factors that are affecting foreign investment and the Baht. These include: 1) The US interest rate outlook; 2) The Yuan outlook and views towards China’s economic recovery; and 3) Thai politics, specially in May 2023. The Baht’s movements have been in alignment with other Asian currencies, but the Thai currency has become the second most volatile Asian currency after the Japanese Yen. Additionally, although factors that have caused Asian and other leading currencies to become more volatile are related to the US dollar, especially, the Fed’s interest rate outlook, the Baht’s increased volatility so far has been caused by specific factors in Thailand, including those related to politics, and specially its sensitivity towards global gold prices (which have increased by 12.3 percent). Close attention, therefore, must be paid to domestic political issues following the general elections. Looking ahead, it is expected that the Baht will move within a wider range of THB33.80-35.40/USD over the short term (projection made by KBank) due to uncertainties from several factors, particularly the US debt ceiling, the Fed’s interest rate outlook, and the political situation in Thailand. In 2H23, close attention must be paid to Thailand’s tourism outlook. If the recovery in Thai tourism can be sustained, that will be a boon for the overall Thai economy and current account balance, which are important fundamentals of the Baht. View full article Login / Register Or Enter the code from the poll Annotation This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow. Financial Markets Baht's value Related Analysis View all 26 Feb 2018 Financial Markets “The Baht weakened slightly, while the SET closed at near last week’s level.” The Baht fell slightly against the US Dollar. The Baht briefly rose early in the week as the US dollar tumbled on a weak US New Home Sales report and falling US bond yields. However, the Baht reversed those gains and weakened later on the Fed Chairman’s viewpoint toward US overall economic and inflation outlooks that reinforced expectations of further US monetary tightening. However, the Dollar’s upside gains were capped later after the Fed Chairman said that there was yet to be seen any clear picture toward wage increases in the US. In addition, concern toward US trade protectionism weighed on the US Dollar sentiment. ... Read more 0 KB 0 KB 19 Feb 2018 Financial Markets “The Baht weakened, while the SET rebounded to over 1,800 points after some sell-offs.” The Baht weakened against the US Dollar. The Baht fell to mid week amid the US Dollar short-covering ahead of the release of the latest FOMC minutes. The US dollar also gained on the US rate-hike outlook and rising US bond yields. However, the Baht pared some losses somewhat later in the week on investors’ position adjustments. ... Read more 0 KB 0 KB 12 Feb 2018 Financial Markets “The Baht bounced back to over a 4-year high, and the SET rose over 1,800 points.” ... Read more 0 KB 0 KB 5 Feb 2018 Financial Markets “The Baht weakened as the SET faced foreign investor sell-offs throughout the week.” ... Read more 0 KB 0 KB 29 Jan 2018 Financial Markets “The Baht traded in a narrow range, while the SET followed foreign factors.” ... Read more 0 KB 0 KB 22 Jan 2018 Financial Markets “The Baht hit an over 4-year high, while the SET improved late in the week.” ... Read more 0 KB 0 KB View all