A research agency involved in one of Thailand’s high-street bank projects, expects the baht will remain under pressure and weaken against the U.S. dollar this week.
Kasikorn Research Center forecasts the Thai currency will trade between 32.30 baht and 33.20 baht per U.S. dollar this week, when the focus will be on the Bank of Thailand’s September economic report and the Ministry of Commerce’s October Thai inflation report.
KResearch noted that the baht has weakened against the U.S. dollar to 33.09 baht per greenback last week, after the country’s exports contracted more than expected while the market has been under the pressure from a foreign investors’ sell-off of Thai shares throughout the week.
The agency added that the U.S. dollar meanwhile, has been strengthening on the back of investors’ aversion to risk from worries about the budget conflict between Italy and the European Union as well as on the Chinese economic slowdown.
It went on to say that the dollar has also been supported by better-than-expected U.S. economic data released late last week