KResearch: THB to move at ฿29.75-30.10/USD

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BANGKOK, 2 May 2011  – Kasikorn Research Center (KResearch) has forecast that the Thai baht this week will move around 29.75-30.10 baht per US dollar while investors are suggested that they should monitor the inflation and domestic political situation. 

KResearch reported that the Thai baht had been moving in a narrow range despite supports from other currencies in the region and foreign capital flowing into the stock market and bond market. Meanwhile, investors have been selling Thai baht to adjust their positions.

In addition, there were occasional purchases of US dollars, reportedly made by the Bank of Thailand (BoT) in its effort to stabilize the national currency movement.

BoT Governor Dr Prasarn Trairatvorakul last week said the BoT would intervene in the baht market to prevent short-term fluctuations and excessive speculations. The Thai baht on Friday, 29 April stood at 29.84 baht per US dollars and on Friday, 22 April at 29.92 baht per US dollars.

As for this week, from 2 to 6 May 2011, the baht is expected to move around 29.75-30.10 baht per US dollar. Major internal factors that must be monitored are the inflation figure for April 2011, domestic political situation and intervention of the BoT to stabilize Thai baht.

Other external factors are investment directions in risky assets of the global financial market which might boost assets and currencies in Asia, interest rate hike projection in China, and other important economic figures in the US.