Baht at 8-month low against US dollar
THE Thai baht weakened to its lowest level in 8 months today (June 29, 2018) breaching the 33.20 baht to the US dollar mark with Kasikorn Research Center projecting that trading will remain within 33.00-33.30 baht band, Thai News Agency reported.
As the Thai currency dropped to the its weakest point in 8 months it tested the 33.208 baht to the US dollar level from 33.145 at opening point yesterday, after which it edged down to 33.16 baht against the greenback
However the Thai baht’s slide is in tandem with other Asian currencies amid worries about a trade war breaking out between US and its trading partners.
Kasikorn Research Center said among important factors to follow still remains US trade and international investment restrictions while key economic figures to follow include US inflation trends shown by Core PCE Price Index .
Meanwhile CNBS quoted Reuters as reporting that the US dollar held firm versus the yen today, supported by quarter-end buying.
The currency was also supported by an absence of fresh escalation in trade-related tensions between the US and its major trading partners.
Still, trade worries look set to dominate the market with traders increasingly worried about the impact of Sino-US trade disputes on China’s economy.
The dollar firmed to 110.49 yen, having made gains for the last three sessions and nearing this month’s high of 110.905, helped by seasonal buying at the end of quarter and half-year.
The yen, which tends to be bought on signs of economic stress because of expectations of Japanese asset repatriation, also lost some support after US President Donald Trump indicated he would take a softer approach on Chinese investments in US technology companies.
The dollar is also broadly supported thanks to the prospects of rising US interest rates on the back of solid expansion in the US economy.
The dollar’s index against a basket of six major currencies stood at 95.288, having risen to as high as 95.534 on Thursday, a high last seen almost a year ago.
The index is on course to make its first quarterly gain in six, having risen 5.9 percent so far.
That partly reflected a loss of momentum in the euro, which has been weighed by European Central Bank’s dovish stance and concerns over political instability in the European Union.
The euro traded at $1.1560, not far from an 11-month low of $1.1508 touched last week.
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