KBANK points out next week’s “baht” range at 34.80-35.50 baht, keeping an eye on Thai economic figures – direction of fund flow.

Kasikorn Bank Public Company Limited or KBANK Looking at the range of the baht’s value movement next week (20-24 Nov. 2023) at the level of 34.80-35.50 baht/dollar, the Kasikorn Research Center assesses important factors that need to be followed, including 3Q23 GDP numbers and Thailand’s October export figures, signs of foreign capital (Flow) and the situation of currencies in the region.

Meanwhile, important US economic figures include sales of second-hand homes. Durable goods orders in October, Consumer Confidence Index in November, number of people applying for weekly unemployment benefits. and the minutes of the Fed meeting on Oct. 31 – Nov. 1. In addition, the market is also waiting to follow the announcement of the Chinese central bank’s Prime Lending Rate (LPR) and the preliminary PMI index for November. Eurozone, England and the United States as well.

As for the baht, it reached its strongest level in two and a half months at 35.05 baht/dollar, with the baht depreciating at the beginning of the week amid strong buying back of the dollar. Before the report of the Consumer Price Index (CPI) of the United States, there was additional pressure from foreign investors’ net selling positions in Thai bonds as well.

However, the baht returned to strengthen in the middle of the week in line with the yuan and other Asian currencies, while the dollar faced heavy selling pressure after the US CPI came out much lower than market expectations. In addition, the increase in the price of gold in the world market is an additional support for the baht as well.

The baht continues to strengthen until the end of the week. and made the strongest record in two and a half months at 35.05 baht/dollar, with the baht appreciating amid heavy selling pressure for the dollar. After the number of weekly unemployment claims and the monthly import price index October of the United States It came out weaker than expected. and encourage the market to have more faith that The Fed may have finished its cycle of raising policy interest rates.

As for Friday, 17 Nov. 2023, the baht closed at 35.05 baht/dollar compared to 35.89 baht/dollar on the previous Friday (10 Nov.) for the investment portfolio status of foreign investors between On November 13-17, 2023, foreign investors net bought Thai stocks for 1,985 million baht, but there was a status of net outflows from the Thai bond market for 3,225 million baht (net sales of bonds of 3,220 million baht and debt instruments that expired of 5 million baht. )