THE Thai baht strengthened last week after the markets saw that the US Federal Reserve will not be increasing interest rates soon while awaiting a US tax reform announcement, Thai News Agency said today (Feb. 11).
Kasikornbank Research said over the past week (Feb. 6-9) the Thai baht tested the 35.00 to the dollar level before weakening at the end of the week.
The Thai currency’s appreciation is a clear signal of foreign investment funds flowing back in amid signs that the US Federal Reserve will not be hiking interest rates in the short term.
However this rise is within a limit frame as the market expects an official intervention to keep the Thai currency stable while the greenback revived after US President Trump issued statements that details of his tax reform plan are forthcoming in the next few weeks.
Yesterday the Thai baht traded at 35.06 baht to the dollar staying as strong as it did the previous Friday (Feb 3).
The Thai stock market index fluctuated last week due to technical reasons with the SET Index closing at 1,585.24 points yesterday, up 0.14% from the previous week, with average daily trade rising 8.40% to reach 54,972.26 million baht while MAI closed at 636.67 points, down 0.78% from the previous week.
Kasikornbank projects that next week (Feb. 13-17) the Thai baht will move in the range of 35.00-35.20 baht to the dollar while Kasokorn Securities Company sees Thai stocks facing support at 1,570 and 1,555 points and resistance at 1,595 and 1,610 points.
Top: Coins of five different countries – Japanese yen, Taiwanese dollar, Malaysian ringgit, US cent, Thai baht. Photo: Aotaro (CC-BY-2.0)