Title: Baht Opens Slightly Lower Against Dollar, Importers Advised to Hedge Foreign Currencies
Date: June 21, 2023
The baht, Thailand’s currency, opened slightly lower against the dollar today, with an exchange rate of 34.83 baht per dollar. This marks a slight depreciation from the previous day’s closing price of 34.75 baht per dollar, according to TMB Thanachart’s Money Markets and International Transactions Department.
The dollar has been narrowing against major currencies, and investors are closely watching Federal Reserve Chairman Jerome Powell’s speeches for insights into the economic conditions in the United States and the direction of the Fed’s interest rates. The Federal Reserve has raised interest rates ten times in a row since March 2022 but kept them steady at the recent meeting. Investors predict that the Fed will raise rates once more this year before cutting them next year.
Despite the slight depreciation, the baht is expected to have support/resistance levels at 34.70-34.95 baht per dollar. Importers are advised to consider buying foreign currency as a hedge to mitigate risks. The recommended currency frames for today are as follows: USD/THB 34.70-34.95, EUR/THB 37.80-38.30, JPY/THB 0.2440-0.2490, GBP/THB 44.20-44.70, and AUD/THB 23.40-23.90.
Overall, the baht’s performance against the dollar reflects the ongoing dynamics in the global currency markets, influenced by factors such as the Federal Reserve’s interest rate decisions and economic conditions in the United States. Importers are advised to stay informed and consider appropriate strategies to manage currency risks.
netting in foreign exchange risk
Baht Opens Slightly Lower Against Dollar, Importers Urged to Hedge Foreign Currencies for Risk Mitigation
Date: June 21, 2023
The baht, Thailand’s currency, kicked off the day with a slight dip against the dollar, registering an exchange rate of 34.83 baht per dollar. This marks a minor depreciation from the previous day’s closing rate of 34.75 baht per dollar, as reported by TMB Thanachart’s Money Markets and International Transactions Department.
Investor attention is captivated by the dollar’s performance against major currencies, with a particular focus on Federal Reserve Chairman Jerome Powell’s speeches for insights into U.S. economic conditions and the direction of the Fed’s interest rates. The Federal Reserve consistently raised interest rates ten times in a row since March 2022 until their most recent meeting, where they opted to keep them steady. Market predictions indicate that the Fed will implement one more rate hike this year before cutting rates next year.
Despite the slight depreciation, the baht is projected to maintain support/resistance levels at 34.70-34.95 baht per dollar. To mitigate risks, importers are advised to consider hedging foreign currencies by purchasing them. Today’s recommended currency frames are as follows: USD/THB 34.70-34.95, EUR/THB 37.80-38.30, JPY/THB 0.2440-0.2490, GBP/THB 44.20-44.70, and AUD/THB 23.40-23.90.
Overall, the baht’s performance against the dollar reflects the ongoing dynamics in the global currency markets, influenced by factors such as the Federal Reserve’s interest rate decisions and U.S. economic conditions. Importers are advised to remain well-informed and adopt suitable strategies to manage currency risks.
The Baht’s marginal decline against the Dollar reflects investors’ anticipation towards the Federal Reserve’s decision on interest rates. Keeping a close watch on this development is crucial for a better understanding of the economic landscape.
The slight decrease in the Baht against the Dollar serves as a reminder of the impact Federal Reserve’s interest rates can have on global currencies. It will be interesting to see how these rates play out in the near future.