BANGKOK, 23 May 2011 – Kasikorn Research Centre (KResearch) has estimated that the Thai baht this week ending 27 May 2011 will move in the range of 30.00-30.35 baht per US dollar after it had depreciated last week.
KResearch reported that the baht last week depreciated against the greenback following other Asian currencies which all faced selling forces at the beginning of last week when the Thai financial market was closed on a religious holiday. Meanwhile, foreign investors were selling Thai stocks and bonds.
In addition, the selling of risk assets by investors gradually stimulated the Thai baht depreciation. The baht on Friday closed at 30.27 baht per US dollar, compared with 30.19 baht per US dollar in the previous Friday 13 May.
As for this week, the baht is expected to move in the range of 30.00-30.35 baht per US dollar. Domestic factors that should be monitored are the Gross Domestic Product for the first quarter this year, domestic politics and intervention of the Bank of Thailand to stabilise the baht.
External factors that should be monitored are the Greek debt crisis and reports of many economic figures from the US.