Investors are concerned that the formation of a new government and political risk could lead to higher baht volatility over the next month, says Kasikornbank (KBank).
The bank predicts the baht will move in a range of 33.80-35.40 per US dollar during the next month because of internal and external factors.
The main determinant is the US Federal Reserve’s policy rate direction, according to KBank.
After the next four weeks, the bank believes domestic politics will shape baht volatility, said Kobsit Silpachai, head of the bank’s capital market research department.
The Fed is planning to hike its policy rate by a quarter of a percentage point twice more this year, starting in September and continuing in December, said Mr Kobsit.
The central bank already hiked its policy rate by a…
