The baht may weaken if the prime minister is removed.

The baht after opening this morning strengthened past 35 baht/dollar, dropping to 34.88 baht/dollar, the strongest in 7 months. The market estimates that the baht may weaken if Prime Minister 'Settha' is removed. A money manager from Bank of Ayudhya revealed that the baht's appreciation was due to the US Producer Price Index (PPI) in July being lower than the market expected, which put pressure on US bond yields and caused the dollar to weaken against other currencies. However, today the market is keeping an eye on the Constitutional Court's ruling on the prime minister's impeachment case. If the prime minister is removed from office, the baht has a chance of weakening back to 35 baht/dollar. However, if the prime minister can continue to perform his duties as before, the baht has a chance of strengthening in line with the weakening US dollar. Mr. Poon Panichpibul, Krungthai GLOBAL MARKETS, Krungthai Bank, revealed that the market is waiting for the Constitutional Court's verdict in the impeachment case of Prime Minister "Srettha Thavisin", which will be gradually recognized from 3:00 p.m. onwards. It should be aware of the volatility in the financial market if the market is increasingly concerned about the uncertainty of Thai politics. 'We have adjusted our view on the baht's trend from Sideways Up to just Sideways, but the baht still has the opportunity to fluctuate and weaken somewhat, especially today if the US CPI comes out higher than expected or the market becomes more concerned about the Thai political situation after hearing the verdict in the impeachment case against the prime minister, which may cause foreign investors to gradually sell more Thai assets, pressuring the baht to fluctuate and weaken,' said Mr. Poon. -511 Source: Thai News Agency