Currency managers from Krungsri Bank reported that the Thai Baht opened this morning at 30.22 Baht/USD, weakening from yesterday's close of 30.16 Baht/USD.

"The Baht weakened from the end of yesterday's market due to concerns over the political situation in the country following violent incidents during protests," said a currency manager.

 

The currency manager estimates the Baht's movement range today at 30.10-30.30 Baht/USD, with the market closely watching the parliamentary meeting to consider the constitutional amendment bill for the first reading vote, political protests, and the Monetary Policy Committee (MPC) meeting.

THAI BAHT FIX 3M (Nov 16) is at 0.45236%, while THAI BAHT FIX 6M is at 0.44762%.

The latest SPOT rate is at 30.21250 Baht/USD.

  • Key Factors
  • The Yen is at 104.08 Yen/USD, down from 104.28 Yen/USD yesterday.
  • The Euro is at 1.1856 USD/Euro, down from 1.1869 USD/Euro yesterday.
  • The average exchange rate of the Baht/USD among banks of the Bank of Thailand is at 30.178 Baht/USD.
  • The President of the Federation of Thai Industries (FTI) revealed that private sector operators are concerned about the currency situation.
The Baht has continued to strengthen, moving around 30 Baht per US dollar, appreciating by 8.20% (from April 1 to November 16), ranking fourth in the region. This has significantly reduced Thailand's export competitiveness, as major trading competitors like Vietnam have only appreciated by 1.66%, making Thai products more expensive than those from other countries. Therefore, there is a call for relevant agencies, especially the Bank of Thailand (BOT), to manage the currency situation to prevent it from appreciating beyond regional levels, with the private sector needing an average of 32 Baht per US dollar.
  • "Supattanapong" indicates that hot money seeking year-end profits is pushing the "Baht strong," while the FTI is concerned that the currency could appreciate by up to 10% from the beginning of the year, impacting competitiveness against Vietnam.
Economists expect the MPC to maintain interest rates at 0.5% while monitoring signals to manage the currency.
  • The Deputy Governor for Financial Institution Stability of the Bank of Thailand (BOT) stated that relevant agencies, including the BOT, capital market agencies, the Thai Bankers' Association, and private funds, are in discussions to establish a debt warehouse, exploring various approaches. The key aspect of the warehouse is to have a guarantee mechanism and to ensure that assets can be sold at acceptable prices for all parties, with clarity expected within this year.
  • The Director of the Public Debt Management Office (PDMO) announced plans to issue bonds or savings bonds in fiscal year 64, amounting to approximately 100 billion Baht, with an initial issuance of 50 billion Baht after the New Year to support economic recovery post-COVID-19, followed by gradual issuance of the remaining amount based on funding needs next year, not exceeding 100 billion Baht. The PDMO confirmed that it will consider the appropriateness of debt issuance against actual funding needs.
  • The spokesperson for the automotive industry group of the Federation of Thai Industries (FTI) stated that if the economy continues to recover, they are confident that car production this year will meet the target of 1.4 million units, especially with the upcoming Motor Expo 2020 from December 2-13, which will help boost sales at year-end.
  • 20 prominent hotels urge the government to expedite the reopening of the country to foreign tourists before businesses collapse, with "Pipat" proposing to the "CCSA" to ease quarantine measures.
  • The Tourism Authority of Thailand estimates that during the long holiday from November 19-22, about 3 million people will travel domestically, generating over 12.6 billion Baht in revenue.
  • The People's Movement has scheduled a large rally on November 18 at Ratchaprasong, warning that this is the last straw regarding the constitutional draft and insisting on no compromise.
  • The U.S. Department of Commerce reported that retail sales in October rose only 0.3%, lower than analysts' expectations of a 0.5% increase, following a 1.6% surge in September. October's retail sales growth was the lowest in six months due to the impact of the COVID-19 pandemic and reduced household incomes, as many Americans faced unemployment.
  • The National Association of Home Builders (NAHB) in the U.S. reported that the builder confidence index rose by 5 points to 90 in November, the highest level on record.
  • The U.S. dollar weakened against major currencies in trading on the New York foreign exchange market last night (November 17) after the U.S. released a lackluster retail sales report due to the impact of the COVID-19 pandemic.
  • Gold futures on the New York market closed lower last night (November 17) as investors took profits after gold prices rose for three consecutive trading days. However, gold futures only declined slightly due to support from the weakening dollar.
  • U.S. economic data scheduled for release this week includes housing starts and building permits for October, weekly jobless claims, the November manufacturing index from the Philadelphia Fed, October existing home sales, and the leading economic index for October from the Conference Board.
 
SOURCE : www.ryt9.com