Bangkok: The Thai baht strengthened to 33.30 baht, following regional trends and in line with the sharp rise in global gold prices. The Thai baht strengthened, breaking below 33.39 baht per US dollar this morning, following the trend of regional currencies and global gold prices which surged above $4,000 per ounce. Investors are also watching for US non-farm payroll data tonight.
According to Thai News Agency, the Thai baht's movement this morning at approximately 09:58 AM showed it trading at around 33.30-33.32 baht per US dollar, strengthening compared to yesterday's closing level of 33.39 baht per US dollar. Analysts say the strengthening of the Thai baht is in line with most currencies in the region, primarily driven by the surge in global gold prices, which have remained strong above $4,000 per ounce.
The US dollar index continued to face pressure after the market interpreted statements from the Federal Reserve Chairman as signaling a dovish approach to monetary policy. Kevin Warsh stated that the risk of inflation in the US has decreased over the past four weeks. However, recent reports suggest that the intraday appreciation of the baht may be limited as investors continue to closely monitor the release of US non-farm payroll figures tonight, as well as the direction of conflicts in the Middle East.
Furthermore, the initial estimate for the Thai baht's trading range today is 33.25-33.40 baht per US dollar. Key factors to monitor include the direction of the Japanese yen, foreign investor capital flows, and US non-farm payroll data and labor market indicators.