Bangkok: The Thai baht continued its upward trajectory, breaking past the 31.00 baht/US dollar mark to register its strongest performance in two weeks at 30.93 baht, before closing at 30.97 baht per dollar. This marks a notable improvement from the previous day's close of 31.08 baht per dollar.
According to Thai News Agency, Ms. Kanjana Chokpaisalsilp, a Research Executive at Kasikorn Research Center, noted that the appreciation of the Thai baht aligns with trends observed in other Asian currencies, driven by sustained foreign fund inflows into Thailand's financial market. On the recent trading day, foreign investors made significant net purchases of Thai stocks and bonds amounting to 10,518 million baht and 1,270 million baht, respectively.
Looking ahead to tomorrow, the trading range for the baht is projected to be between 30.90 and 31.20 per US dollar. Key factors influencing this range include foreign fund flows, the movement of Asian currencies, global gold prices, and the January Consumer Price Index (CPI) figures.
Kasikorn Research Center highlighted that foreign investment has been consistently flowing into Thailand's stock and bond markets since the 2026 general election. From February 9 to 11, foreign investors accumulated net purchases of Thai stocks and bonds totaling 32.8 billion baht. This amount is significantly high compared to the same period following previous elections, reflecting optimism about governmental stability, continuity of economic policies, and prospects for a domestic interest rate cut.
The trajectory of foreign capital inflows will depend on several critical factors, particularly the Thai economic climate and investor confidence. Attention must be paid to three main issues:
1. The stability of the new government and the continuation of economic support measures, which will affect medium-term growth prospects.
2. Risks surrounding Thailand's fiscal status and the assessments of credit rating agencies.
3. Fluctuations in foreign money and capital markets, which will remain a crucial external factor influencing the timing of foreign fund flows into Thailand's financial market.