Kasikorn Research Center says Thai baht volatile amidst global uncertainties

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Bangkok – Many sectors have expressed concern over the strengthening Thai baht, as it approaches a three-year high of 32.2 baht per US dollar. However, Kasikorn Research Center says the baht’s appreciation remains in line with other currencies in the region.

The research center said that the US dollar still lacks significant support factors, despite indications by the US Federal Reserve that it will continue to raise interest rates. The move is in contrast to Thailand’s intention to hold interest rates at 1.5% for much of 2018.

Kasikorn says it will continue to monitor the volatility of the Thai baht due to various global uncertainties, as interest rate hikes by the Federal Reserve are not the sole factor affecting the currency this year. Other factors include Thailand’s budget surplus, and the domestic and international politics of the United States.

The research center advises the private sector to select appropriate risk management tools, especially businesses dealing with international transactions, to better manage inflows and principle capital.