A money manager from Bangkok Bank reported that the baht closed at 36.56/60 baht per dollar, down from the opening price of 36.61/62 baht per dollar. The baht traded within a range of 36.56 to 36.60 baht per dollar throughout the day, remaining relatively stable. Meanwhile, the Thai stock market saw some buying activity. The announcement regarding the 10,000 baht digital wallet project had little impact on the baht as it only provided clarification on the registration process. Around 10:00 a.m., the yen rapidly appreciated, causing major currencies like the euro, pound, and dollar to weaken once morest it. Speculation arose that the Japanese government might intervene in the currency market. The market is now awaiting the release of June’s non-farm payroll figures for the United States. Money managers predict the baht will fluctuate within the range of 36.45 to 36.75 baht per dollar on Monday.
* Key factors
– The yen closed at 160.68/72 yen per dollar, down from the morning’s 161.02/06 yen per dollar. – The euro closed at 1.0826/0830 dollar per euro, up from the morning’s 1.0814/0818 dollar per euro. – The index closed at 1,311.99 points, up 10.95 points (+0.84%) with a trading value of 32,908 million baht. – Foreigners net bought 1,751.70 million baht in the stock market. – The Deputy Minister of Finance and Chairman of the Subcommittee on Supervising the Implementation of the 10,000 baht top-up project via digital wallet announced that Prime Minister Settha Thavisin will hold a press conference in late July 2024 to disclose the registration date and other project details. – The Ministry of Commerce reported that the Consumer Price Index (CPI) or inflation rate in June was 108.50, an increase of 0.62% year-on-year but a decrease of 0.31% from May. This slower rate compared to the previous month’s 1.54% was attributed to declining electricity prices and slower growth in fresh vegetable prices due to favorable weather conditions. – The Ministry of Commerce reported that the Consumer Confidence Index (CCI) for June was 52.3, slightly down from 52.4 in the previous month but remaining in the confident range for the 19th consecutive month since December 2022. Current consumer confidence rose to 44.5 from 44.1, while the future consumer confidence index (3 months) fell to 57.5 from 57.9. – Bitcoin prices declined for the fourth consecutive day, indicating continued sell-offs in the cryptocurrency market, a trend opposite to the recent record highs in global stock markets. – The Labour Party led by Keir Starmer secured a landslide victory in the UK parliamentary elections, unseating the Conservative Party following 14 years in power. – The president of the European Central Bank (ECB) stated that the ECB requires more information to ensure inflation reaches its 2% target before considering further interest rate cuts.
Baht Remains Stable Amidst Global Market Fluctuations
The Thai baht closed at 36.56/60 baht/dollar on Friday, June 28th, 2024, according to a money manager from Bangkok Bank. This represents a slight appreciation from the morning’s opening rate of 36.61/62 baht/dollar. Throughout the day, the baht traded within a tight range of 36.56 – 36.60 baht/dollar, indicating stability despite several external factors influencing global markets.
Key Factors Influencing Baht Movement
Several factors contributed to the baht’s behavior on Friday. The Japanese yen’s rapid appreciation once morest major currencies, including the euro, pound, and dollar, sparked speculation regarding potential intervention by the Japanese government. This event led to a weakening of these currencies, which in turn influenced the baht.
Additionally, news regarding the 10,000 baht digital wallet project did not significantly impact the baht. While the followingnoon announcement provided clarity on the registration process, it was deemed a non-event by market observers.
Thai Stock Market Performance
The Thai stock market exhibited buying power, closing the day at 1,311.99 points, up 10.95 points (+0.84%). Foreign investors were net buyers, contributing 1,751.70 million baht to the market’s positive performance.
Upcoming Economic Data Points
Market sentiment is now focused on the release of the non-farm payroll figures for June in the United States. Money managers anticipate the baht to trade within the range of 36.45 – 36.75 baht/dollar on Monday, June 30th, 2024, as the market awaits these crucial economic data points.
Global Market Movements
Beyond the Thai baht’s behavior, other global market movements are worth noting:
- Japanese Yen: Appreciated to 160.68/72 yen/dollar from 161.02/06 yen/dollar earlier in the day. The yen’s strength is a significant development, potentially causing ripples in currency markets worldwide.
- Euro: Traded at 1.0826/0830 dollar/euro, down slightly from the morning’s 1.0814/0818 dollar/euro.
Other Economic News
Here are some additional economic news updates:
- 10,000 Baht Digital Wallet Project: The Deputy Minister of Finance and Chairman of the Subcommittee on Supervising the Implementation of the 10,000 baht top-up project via digital wallet announced that Prime Minister Settha Thavisin will hold a press conference in late July 2024 to provide details regarding the project, including the registration date.
- Consumer Price Index (CPI): The Ministry of Commerce reported that the CPI for June 2024 stood at 108.50, a rise of 0.62% compared to the same month last year. However, it decreased by 0.31% from May’s reading of 1.54%. The slowdown is attributed to factors like lower electricity prices and favorable weather conditions for vegetable cultivation.
- Consumer Confidence Index (CCI): The CCI for June remained in the confident range for the 19th consecutive month, registering at 52.3, a slight dip from the previous month’s 52.4. The current consumer confidence index rose to 44.5 from 44.1, while the future consumer confidence index fell to 57.5 from 57.9.
- Bitcoin Price: Bitcoin experienced its fourth consecutive day of decline, suggesting continued sell-offs in the cryptocurrency market. This contrasts with the recent surge to record highs in global stock markets.
- UK Elections: The Labour Party, led by Keir Starmer, secured a landslide victory in the UK parliamentary elections, ushering in a new era following the Conservative Party’s 14-year reign.
- European Central Bank (ECB): ECB President Christine Lagarde stated that the bank requires more information to confirm inflation’s descent to its 2% target before considering further interest rate cuts.
| Factor | Impact on Baht |
|---|---|
| Yen Appreciation | Indirect impact due to weaker USD |
| 10,000 Baht Digital Wallet Project Announcement | Minimal impact |
| Thai Stock Market Performance | Positive sentiment |
| Upcoming Non-Farm Payroll Data | Potential volatility in the near term |
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