BANGKOK, Thailand – Thailand’s baht is expected to trade between 32.10 and 33.10 per U.S. dollar this week, while the Stock Exchange of Thailand (SET) is forecast to face resistance at 1,610-1,625 points, as investors await the U.S. Federal Reserve’s latest policy decision, updated Dot Plot projections, foreign fund flows, and developments in the Middle East, according to Kasikorn Research Center. The research house said the baht weakened during the first half of the past week, pressured by falling global gold prices and a stronger U.S. dollar as investors sought safe-haven assets amid heightened tensions in the Middle East. Concerns escalated after reports of military incidents involving Iran and renewed uncertainty surrounding the Strait of Hormuz. Stronger-than-expected U.S. economic data, including non-farm payrolls and inflation figures, also reinforced expectations that the Federal Reserve could maintain a tighter monetary stance later this year. The baht briefly fell to a more than two-month low of 32.99 per dollar before recovering after U.S. President Donald Trump suggested Washington and Tehran were nearing a peace agreement. The Thai currency closed at 32.70 per dollar on June 12.
For the week of June 15-19, investors will closely monitor the outcome of the Federal Open Market Committee (FOMC) meeting and the Fed’s updated interest-rate projections, along with foreign capital flows and the evolving geopolitical situation in the Middle East. Meanwhile, the Thai stock market experienced sharp swings last week as concerns over regional tensions and continued foreign selling weighed on sentiment. However, the market rebounded strongly toward the end of the week following signs of easing tensions between the United States and Iran. The SET Index closed at 1,592.41 points on June 12, up 0.62% from the previous week, while average daily trading value declined 25.36% to 62.38 billion baht. Kasikorn Securities expects the SET Index to find support at 1,560 and 1,550 points, with resistance levels at 1,610 and 1,625 points. Key factors for the week ahead include the Fed meeting, foreign investment flows, Middle East developments, and major economic data from the United States, China, Europe, Japan, and the United Kingdom. (TNA)
