BANGKOK, Thailand – The Thai baht is expected to trade in a range of 32.50–33.20 baht per US dollar from Aug. 31 to Sept. 4, with markets closely watching foreign fund flows, Thailand’s current account data and developments in the Middle East, according to Kasikorn Research Center. The center said several key US economic indicators will also shape market sentiment, including job openings, July factory orders, manufacturing and services PMI figures, August nonfarm payrolls and unemployment, weekly jobless claims and the Federal Reserve’s Beige Book.
Markets will also monitor manufacturing and services PMI data from China, Japan, the euro zone and the United Kingdom, along with August inflation figures from the euro zone. The baht weakened during the previous week, while the US dollar gained ground amid changing expectations over the Federal Reserve’s interest-rate outlook. The Thai currency briefly strengthened at the start of the week amid dollar selling linked to concerns over volatility in US bond yields and market speculation about possible intervention measures by the US Treasury.
The baht then came under renewed pressure from midweek after the Bank of Thailand’s Monetary Policy Committee kept the policy rate unchanged at 1.00%. The central bank maintained a relaxed monetary policy stance aimed at supporting the Thai economy.
The baht moved closer to the 33-baht-per-dollar level later in the week, in line with profit-taking in the global gold market.
Meanwhile, the US dollar received support from higher US Treasury yields after July PCE inflation and weekly jobless claims data came in better than markets had expected. The figures contributed to expectations that the Federal Reserve could still raise interest rates before the end of the year.
On Friday, Aug. 28, the baht closed at 32.95 per US dollar, compared with 32.68 a week earlier.
Foreign investors also remained net sellers in Thai financial markets during Aug. 24–28. They sold a net 12.23 billion baht worth of Thai shares and recorded net outflows of 375 million baht from the Thai bond market.
Kasikorn Research Center said investors will continue to assess both domestic and international factors in the coming week, with US employment data and the Federal Reserve’s policy outlook likely to remain key drivers of currency movements.
