PATTAYA, Thailand – Thailand’s Kasikornbank (KBANK) expects the Thai baht to trade within a range of 32.70-33.40 per U.S. dollar during the week of July 6-10, following Friday’s close at 33.14 baht per dollar. The bank said the baht began last week on a firmer note, supported by rising global gold prices and renewed foreign investor interest in Thai assets. Overseas investors were net buyers of both Thai equities and government bonds, helping strengthen the local currency. Midweek, however, the baht gave up some gains and weakened alongside other Asian currencies, including the Japanese yen, which fell to its weakest level in decades. At the same time, the U.S. dollar found support from expectations that the U.S. Federal Reserve could maintain higher interest rates for longer, while ongoing geopolitical uncertainty in the Middle East also boosted demand for the greenback.
By the end of the week, the baht rebounded, reaching its strongest level in a week at 33.13 per dollar. The recovery was driven by another rise in gold prices and broad-based selling of the U.S. dollar after investors interpreted recent comments from Federal Reserve officials as more dovish than expected. Weaker-than-forecast U.S. nonfarm payroll data also reinforced expectations that the Fed may delay further interest rate increases. Foreign investment flows remained robust throughout the week. Between June 29 and July 3, overseas investors recorded net purchases of 26.1 billion baht in Thai equities and a further 11.2 billion baht in Thai bonds, reflecting continued confidence in Thailand’s financial markets.
Looking ahead, market participants will closely monitor Thailand’s June inflation figures, foreign capital flows, developments in the Middle East, and additional comments from Federal Reserve officials. Investors will also be watching key U.S. economic releases, including the ISM Services PMI, existing home sales, weekly jobless claims, and the minutes from the Fed’s June policy meeting. Inflation data from China and producer price figures from Japan are also expected to influence regional currency markets.
