Bangkok: The Thai baht opened the market at a stronger position of 33.41 baht per dollar, reflecting a response to the slowdown in US economic growth. Investors are also closely monitoring the Japanese yen, which is under scrutiny due to its volatility.
According to Thai News Agency, the appreciation of the baht, which traded between 33.41 and 33.43 baht per dollar this morning, marks a notable improvement from the previous day's closing of 33.60 baht per dollar. This trend aligns with regional currency movements and contrasts with the weakening of the US dollar. The US dollar's decline follows the release of second-quarter GDP figures for 2026, indicating a growth rate of only 1.5%, short of the market's expectations of 1.8%.
Additionally, the US Core PCE inflation index for June has slowed to 3.3%, further eroding the dollar's strength. Despite this, the baht's potential for continued appreciation may face challenges, as market participants remain vigilant regarding the yen's direction. The yen experienced a downturn after a rapid increase last night, suspected to be due to Japanese market intervention.
Analysts project that the Thai baht will trade within a range of 33.35 to 33.50 baht per US dollar throughout the day. Key factors that investors are urged to keep an eye on include geopolitical tensions in the Middle East, the outcomes of the Bank of Japan meeting, Thailand's June current account balance figures, and data on US consumer confidence.