Financial experts are predicting a further depreciation of the baht throughout this month and next, due to the increased volatility in the global money and capital markets. This follows the US Federal Reserve’s recent suggestion of a potential increase in its benchmark interest rate.
Poon Panitchpibun, a strategist at Krungthai Global Market, a research centre of Krungthai Bank, noted that the baht opened on Thursday at 36.25 against the US dollar, a depreciation from the previous day’s close of 36.07. The baht had shown a gradual strengthening, fluctuating between 35.86 to 36.23 per dollar on Wednesday night, before it slipped as the dollar and US 10-year bond yields rose, following the Federal Reserve’s hint at an additional interest rate hike this year and fewer cuts next year.
Analysts interpret the Federal Reserve’s actions as an attempt to achieve a…
