Global Markets Group Company Details Bank of Ayudhya Public Company Limited: Baht Direction and Economic Outlook – Weekly Update

Stock size – Global Markets Group Company details Bank of Ayudhya Public Company Limited There is a view on the direction of the baht this week that the baht this week tends to move within the range. 36.60-37.30 baht/dollar Compared to last week the baht closed weakly at 36.94 baht/dollar after trading in a range of 36.83-37.17 the dollar weakened against most major currencies except the yen and Swiss franc last week. The United States reported GDP growth in the first quarter of 1.6%, below market expectations and the slowest growth rate in nearly two years However, the Core Personal Consumption Price Index accelerated to 3.7%. Such high inflation increases the likelihood that the Federal Reserve (Fed) will keep interest rates high for a long time. The yen fell to a new 34-year low after the Bank of Japan (BOJ) voted unanimously to keep interest rates at 0.0-0.1% and expected inflation to remain close to its 2% target over the next 3 years, which is a sign that interest rates will be raised again this year. But the BOJ has shown little concern about the inflationary impact of the yen’s recent continued depreciation. This leads investors to estimate that the yen could fall further until the rise in US bond yields stops.

For this week’s summary Krungsri Global Markets Group believes the Fed will keep its policy interest rate at 5.25-5.50% at the April 30-May 1 meeting. The market will follow the Fed’s statement and stance to guide US interest rates. April employment data from the US will be assessed at the end of the week, which will be an important key indicator for the dollar. In addition, we expect that an intervention to support the yen is imminent and could happen at any time holiday

for domestic factors The BoT said the current policy interest rate is close to the neutral rate and is not slowing down the economy. But they are ready to adjust their policies accordingly if economic data and conditions change. The BoT believes that the Thai economy expanded close to its potential. At the same time, interest rates and overall financial conditions are in line with growth In addition, the authorities periodically monitor the value of the baht in cases where it is considered too volatile

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