THB to move 29.50-29.90 THB/USD this week

0
352

BANGKOK, 1 August 2011 – Kasikorn Research Centre (KResearch) has estimated that the Thai baht this week (from 1 to 5 August 2011) will move in the range of 29.50-29.90 baht per US dollar while the US government’s effort to enforce a legislation enabling an increase in its debt ceiling must be monitored closely.

KResearch reported that the baht at the beginning of last week appreciated similarly to other regional currencies and the euro as investors sold US dollars upon concerns over the ability of the US to pay its debts. Meanwhile, gold traders also sold US dollars.

The baht then became weakened as importers and some investors bought US dollars following the Bank of Thailand’s intervention to stabilise the Thai currency. The baht closed at 29.80 per US dollar on Friday, compared with 29.77 baht per US dollar a week earlier.

As for this week, the baht is expected to move in the range of 29.50-29.90 baht per US dollar. Domestic factor that should be monitored is the inflation report from the Ministry of Commerce while KResearch expected that inflation in July should go up to 2.7% from 2.55% in June 2011.

Meanwhile, external factors that should be focused are important economic figures from the US and its debt ceiling increase issue which must be finalised before 2 August 2011 and will have impact to long-term budget of the country.