CIMB Thai Bank projects that the baht to US dollar rate will be in the range of 33.00-33.40 next week (Oct-16-20) with the markets concerned about US President Donald Trump’s tax reform plan while waiting for latest Chinese economic figures, INN News said today (Oct. 13).
CIMB Thai’s research section said the US dollar weakened against most currencies during October 9-12 because investors are worried that US President Donald Trump’s tax reform move will run into fresh obstacles after the American President’s caustic exchange with Republican Senator Bob Corker last Sunday.
They are also concerned that the tax reform plan would likely increase US budget deficit and public debt.
Moreover according to a Reuters report the US Labor Department has said that non-farm payrolls decreased by 33,000 jobs last month amid a record drop in employment in the leisure and hospitality sector. The decline in payrolls was the first since September 2010.
The decline reflected the devastating effects from Hurricanes Harvey and Irma.
However CIMB Thai Bank said next week all eyes will be on Chinese economic figures which will be steadily released throughout the week with the key ones being industrial production, retail trade, fixed asset investment and Chinese GDP in the third quarter.
Meanwhile a Reuters report published by CNBC said the dollar inched down today (Oct. 13), as US Treasury yields stayed near recent lows, awaiting US inflation data for a potential boost following this week’s fall from 10-week highs.
The dollar index, which tracks the US currency against a basket of six major peers, was 0.1 percent lower at 92.970, and poised to shed 0.9 percent for the week.
The index had risen to the 10-week peak of 94.267 last Friday after robust US wages data hardened expectations for a December Federal Reserve rate hike, but it has slipped through the week along with a steady decline in Treasury yields.
The dollar was slightly lower on the day against its Japanese counterpart at 112.120 yen, and on track for a fall of 0.3 percent for this week, during which it went as low as 111.990.
Top: Five different coins in five different currencies – Japanese yen, Taiwanese dollar, Malaysian ringgit, US cent and Thai baht. Photo: Aotaro (CC-BY-2.0)