KReseach: Baht next week to strengthen beyond 30 Baht per USD

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BANGKOK, 17 July 2011  – Kasikorn Research Center has predicted that the Thai Baht is getting stronger, approaching 30 baht against the US dollar. 

The Thai currency slightly went down at the beginning of last week amidst the sell of risk-prone stocks and commodities from investors worldwide due to concerns toward Europe’s debts crisis and economic slowdown in many regions.

The Baht then bounced back close to 30 Baht/USD during midweek following the sale of the US dollars triggered by signs of new relaxed monetary policies of the U.S. Federal Reserve as well as a chance that U.S. credit rating might be lowered. According to KResearch, factors such as Bank of Thailand’s stringent control on future monetary policies and strong Asian currencies also help support Thai baht to become stronger.

As for next week, KResearch has forecast that the Baht value will be moving in the range of 29.95-30.35 THB/USD. However investors are urged to keep an eye on an aftermath of the recent European Banking Authority’s bank stress tests, the US’s plan to expand its debt ceiling along with other US economic reports such as real estate market index in July, figures of secondhand residence sale and the number of weekly unemployed registered for social welfare payments.