Kasikorn Bank Public Company Limited or KBANK looks at the movement of the baht next week (September 12-16) at 35.80-36.80 baht / dollar from the market close at 36.28 baht / dollar on 9 July. Yr. 65
However, the baht appreciated once morest the dollar. The baht gradually appreciated in the beginning of the week following the direction of the yuan. After the People’s Bank of China announced a reduction in foreign currency reserves that financial institutions must maintain. This led the market to interpret it as an attempt to slow the yuan’s depreciation.
However, the baht and other Asian currencies returned to experience short-term selling pressure. mid week according to the yen situation (Weakest in 24 years) and Yuan (Weakest in two years), which are pressured by the trend of monetary policy. which has a different direction from the US monetary policy tightening signal
In addition, the baht’s appreciation was in line with the net buy position of foreign investors in the bond market. Between September 5-9, foreign investors bought net Thai bonds as high as 10,935 million baht, but sold Thai stocks at 5,204 million baht.
Although the Federal Reserve Chairman (Fed) has signaled continued tightening. But the dollar weakened further at the end of the week. especially when compared to the euro After the European Central Bank (ECB) raised interest rates by 75 bps. and signaled further interest rate hikes to curb the eurozone inflationary pressures, which are likely to double digits going forward in line with energy prices.
For the next week, the key factors to be monitored include foreign capital flows. And the results of the Bank of England (BoE) meeting, while important US economic numbers are the consumer price index. Producer Price Index Import and Export Price Index Retail Sales Industrial Production Aug. New York Fed and Philadelphia Fed Manufacturing Survey and the Consumer Confidence Index (preliminary) in September and the number of weekly unemployment claims. In addition, the market is waiting to monitor the August inflation rate. of England and the Eurozone including China’s economic data for August as well
