Baht weakens as US dollar firms up
The value of the baht weakened today to 34.34 baht per US dollar.
Noting the decline from the previous week's closing rate of 34.12 baht per dollar, Krung Thai Bank's currency analyst, Poon Panichpibul added that the expected range today would be around 34.15-34.40 baht/dollar.
The baht's value has been weakening since last Thursday, fluctuating within the range of 34.09-34.47 baht per US dollar, following the movement of the US dollar and gold transactions. The baht's fluctuation almost tested the resistance zone at 34.50 baht as the dollar strengthened.
Gold prices have continuously adjusted downwards, approaching the short-term support zone. Additionally, the decreased transaction volume during the Thai financial market holidays has contributed to reasonable fluctuations within the aforementioned wide range.
It is anticipated that the previous week's strengthening might slow, providing a chance for the baht to test the resistance zone at 34.50 baht per dollar if market players reduce expectations of a Federal Reserve interest rate reduction.
Poon added that monitoring gold prices would be crucial as they could continue to adjust downwards if the market does not perceive a quick and significant interest rate reduction as expected. Foreign investors might resort to net selling after the SET index approaches the resistance zone, and Thai bond yields continuously decrease, offering opportunities for investors to gradually sell and make profits.
