KASIKORN Research Center said today (July 7, 2018) that it is possible the Thai baht will weaken some more against the US dollar next week after sliding to the lowest point in 8 months amid US-China trade war jitters, Thai News Agency reported.
The Thai currency touched to the lowest level in 8 months at 33.29 baht to the dollar last week, with all regional currencies tumbling through the sale of risky assets and the weakening of the Chinese yuan, even though the Chinese authorities sent a signal that they will maintain the stability of their currency.
Worries about US-China trade war heightened after both US and China each slapped tariffs on $34 billion in goods, with US tariffs taking effect on Friday July 6, and China immediately retaliating.
On Friday the Thai baht traded at 33.17 to the dollar compared to 33.12 the previous Friday, having improved a little prior to the announcement of the US nonfarm payrolls on Friday, which showed US economy added another 213,000 jobs though the unemployment rate rose to 4%.
Kasikornthai Bank estimates that the Thai baht will move in a range of 32.80-33.40 baht to the dollar next week.
Meanwhile the Thai SET Index rose above 1,600 points towards the end of the last week, closing at 1,614.76 points on Friday, a rise of 1.20% from the previous week. Average daily trading volume rose 7.42% from last week to 57,270.73 million baht.
The Market for Alternative Investment (MAI) closed at 419.12 points, up 0.61% from the previous week.
Kasikorn Securities Plc sees Thai stocks having resistance at 1,560 and 1,585 points and support at 1,630 and 1,650 points next week. To be followed closely are the movement of Chinese yuan, the US-China trade dispute and US Federal Reserve Chairman Jerome Powell’s testimony at Capitol Hill.
Top: A graphic shows some Thai baht against a background of a stock digital board. Photo: Matichon