Kasikorn Research Center The baht depreciated past 36.65 baht, the weakest in 16 years due to the strong dollar. Investors sell every asset, turn holding the dollar.
Ms. Krittika Boonsang, Economic and Capital Market Research Specialist Kasikorn Bank revealed that recently, the baht has weakened past 36.65 baht against the US dollar, at 36.675 baht, the highest depreciation in 16 years since 2006 (2006).
while the support of the dollar Expectations that the Fed may raise the policy rate to 1.00% as the dollar tends to accelerate the tightening of US monetary policy. As inflation pressures and production costs remain high, the US Producer Price Index was last +11.3 percent in June (above the market expectation of +10.7 percent).
“Right now the dollar is very strong. after inflation came out better than expected Almost every asset was sold. money flowing into the dollar causing the baht to depreciate a lot From now on, we have to wait to see if the resistance at 36.75 baht will stay or not. If not, we may test the level of 37 baht, which must keep an eye on whether the Bank of Thailand encounters pressure. In addition to raising interest rates May have to take care of the money as well,” said Ms. Krittika.
As for the movement of the baht today, it is estimated at 36.50-36.80 baht per dollar. while the important factors that need to be monitored include the situation of foreign capital. China’s 2Q22 GDP figures and US economic data such as retail sales, June industrial production and the Consumer Confidence Index and inflation expectations in the consumer corner for July.
