“Thai Baht Depreciates Against Dollar Due to Rising Bond Yields and US Economic Growth”

A money manager from Bank of Ayudhya revealed that the baht opened this morning’s market at 34.74 baht / dollar, depreciating from The market closed yesterday evening at 34.59 baht / dollar, moving in line with regional and global markets. because the dollar appreciates Rising Bond Yield After the US economic numbers announced last night were better than expected. The total amount of unemployment benefits in the week that less than expected And GDP in the first quarter of this year grew 1.3%, higher than expected at 1.1%, while considering the US debt ceiling expansion. good trend While the price of gold in the world market dropped about 20 dollars / ounce.

“The baht depreciated from yesterday evening. The direction is volatile and tends to depreciate. because there are supporting factors both inside and outside the country

money management said

money manager Estimate the movement of the baht today at 34.60 – 34.85 baht / dollar by factors that affect the value. Today’s baht is the direction of foreign capital (Flow) as foreign investors continue to sell bonds and stocks, including imports of gold.

THAI BAHT FIX 3M (May 25) was at 1.69082%, while THAI BAHT FIX 6M was at 1.93646%.

• important factor

• The yen was at 140.00 yen/dollar from 139.52 yen/dollar yesterday evening.
• The euro was at $1.0724/euro from $1.0730 yesterday evening.
• Thai baht/dollar exchange rate The BOT’s interbank weighted average was at 34.716 baht/dollar.
• Fitch Ratings, a global credit rating agency issued a report stating that unstable aspect

City and finance may be a drag on Thailand’s credit rating.

• Commerce Knocking on export plans in 7 regions, a total of 350 activities, pushing up export figures in the second half of the year

The full-year target turned to be positive 1-2%, private sector worried about the baht fluctuation. Minimum wage increase affects production costs Confident that export value will bottom out

already

• Deputy chairman of the Thai Chamber of Commerce stated that exporters are concerned about the government’s policy of raising wages as a factor.

risks affecting Thai exports Because if wages increase, production costs will increase. and the competition is more difficult The employer group did not select

oppose wage increases But raising wages according to campaign policies is considered very dangerous and will cause investors to think hard. Especially new companies will

Postpone investment because of unclear wages As for the old companies that have already invested, there will inevitably be more cost burdens.

• Director-General of the Treasury Department revealed that the Department is currently in the process of adjusting the rental price of state property land that is leased to the private sector in a commercial way.

Commerce has made great progress. In principle, it must be fair. The said rental price adjustment has already been stated in the lease agreement whether

Perform this part every 3 years or 9 years depending on the contract.

• The US Commerce Department released its second estimate of gross domestic product (GDP) for the quarter.

1/2023, stating that GDP grew by 1.3%, higher than analysts’ expectations of 1.1% and higher than the first estimate of

1.1%

• US Department of Labor First-time applications for unemployment benefits rose 4,000 to 229,000.

last week But below analysts’ expectations of 245,000.

• Investors continue to worry about the US debt ceiling as Fitch Ratings issues a credit rating.

Watch) of the US is negative. And warned that it may downgrade the credit rating of the United States, which is currently at AAA, due to further negotiations.

The debt ceiling has not made any progress. This could result in the US facing a historic default on its debt.

• The US dollar continued to strengthen against major currencies in day trading on the New York Stock Exchange.

Thursday (May 25), as investors continue to buy dollars as a safe-haven currency. Amid concerns about debt defaults

of the United States and the latest Fitch Ratings warned that it may downgrade the credit rating of the United States. Because the negotiations to increase the debt ceiling is still stretching.

long

• New York gold futures closed down to a nine-week low on Thursday (May 25) and closed in the territory.

Down for 4 consecutive days as dollar strength continues to drag the market While investors keep an eye on the release of the spending price index.

for personal consumption (PCE) in the United States today. To find a signal indicating the direction of interest rates of the Federal Reserve (Fed).

• Investors are keeping an eye on the US Personal Consumption Expenditure (PCE) Price Index for April today.

PCE is a measure of inflation that the Fed cares about. Because it can detect changes in consumer behavior. and cover the price

products and services more broadly than the Consumer Price Index (CPI) data.