BANGKOK, 3 Feb 2014, – According to the analysis of Kasikorn Research Center Company Limited (K-Research), last week the Thai currency weakened further, closing at 33 baht against the U.S. dollars.
The depreciation was attributed to concerns over the stability of the new market such as Argentina and Turkey at the beginning of the week, citing the pressure further reinforced by the U.S. Federal Reserve’s announcement of decreasing the Quantitative Easing measures. Another major element contributing to the weakening baht was the months-long local political impasse, as investors were keeping a close watch during the period leading to the recently concluded general election.
The baht was traded at 32.97 baht per dollar comparing to 32.82 baht in the previous week.
As for the outlook for this week, analyst at the center predicted the local currency would be traded within the range of 32.90 – 33.20 baht against the greenback.
The post-election political situation would dictate the baht value, along with January’s Purchasing Managers Index (PMI) from foreign markets, the U.S. key economic figures, and the outcome of the European Union Central Bank’s meeting on monetary policies.