Baht Continues to Strengthen Amidst Rising Gold Prices
The Thai baht continues to strengthen, coinciding with a rise in gold prices, according to POON PANITPIBOON, a foreign currency analyst at Krung Thai Bank. The baht is performing stronger than expected, trading between 34.26 and 34.45 to the US dollar.
This boost is attributed to the weakening US dollar and a drop in the yield of US 10-year treasury bonds from 3.89% to 3.8%, which, in turn, pushes gold prices up. Investors anticipate that the US Federal Reserve will cut interest rates gradually starting next year, maintaining their risk-on approach as highlighted by the slight increase in the S&P500 index by +0.14%.
European markets are in sync, with the STOXX600 index closing up by +0.21% as investors predict central banks will lower interest rates.
Poon advised Thai investors to watch the baht's movements closely, especially on Thursday afternoon, as trading could slow down with the upcoming New Year holidays.
He expects the baht to stabilize around the bank's projected year-end rate of 34.5 to the US dollar but does not foresee it crossing the 34-baht threshold unless new factors, like US employment data released in early January, influence the market.
European markets are in sync, with the STOXX600 index closing up by +0.21% as investors predict central banks will lower interest rates.
Poon advised Thai investors to watch the baht's movements closely, especially on Thursday afternoon, as trading could slow down with the upcoming New Year holidays.
He expects the baht to stabilize around the bank's projected year-end rate of 34.5 to the US dollar but does not foresee it crossing the 34-baht threshold unless new factors, like US employment data released in early January, influence the market.