BANGKOK, Thailand – The Thai baht strengthened steadily last week, briefly reaching a two-month high of 32.64 baht per US dollar, helped by selling pressure on the dollar following weaker US economic data, better-than-expected Thai second-quarter GDP and rising gold prices. Kasikorn Research Center said the baht later weakened slightly amid concerns over tensions in the Middle East. On Aug. 21, the baht closed at 32.67 per dollar, strengthening from 33.15 a week earlier.
Foreign investors were net sellers of Thai shares worth 3.46 billion baht and recorded net outflows of 3.92 billion baht from the Thai bond market. For Aug. 24–28, Kasikornbank expects the baht to trade between 32.30 and 33.00 per dollar. Key factors to watch include the Bank of Thailand’s Monetary Policy Committee meeting on Aug. 26, July export figures, foreign fund flows, developments in the Middle East and remarks by the US Federal Reserve chair at the Jackson Hole meeting.
The Thai stock market was volatile last week but recovered toward the end of the week. The SET index closed at 1,613.78 points on Aug. 21, up 0.29% from the previous week, while average daily trading value rose 12.53% to 81.95 billion baht. The mai index gained 1.11% to 230.28 points. For the coming week, Kasikorn Securities sees support for the SET at 1,600 and 1,585 points, with resistance at 1,630 and 1,655 points. Investors will closely watch the MPC meeting, Thai exports, foreign fund flows, the Jackson Hole meeting, Middle East tensions and key US economic data. (TNA)
