Thai baht volatility increases

The Thai baht has been experiencing a greater degree of volatility against the US dollar than its regional peers, mainly due to market expectations of a US policy rate cut and global gold prices.

A bank employee counts Thai baht notes in Bangkok, Thailand (Photo: AFP/VNA)
A bank employee counts Thai baht notes in Bangkok, Thailand (Photo: AFP/VNA)

Bangkok (VNA) - The Thai baht has been experiencing a greater degree of volatility against the US dollar than its regional peers, mainly due to market expectations of a US policy rate cut and global gold prices.

The baht's rate of volatility stands at 7.3%, slightly below the Korean won at 7.4%. However, the baht's volatility is higher than other regional currencies, with the Malaysian ringgit and Indonesian rupiah both recorded at 5.5%, the Philippine peso at 4.7% and the Singapore dollar at 3.7%.

Meanwhile, the US Dollar Index recorded a volatility rate of 5.3%, according to Kasikorn Research (K-Research). The US Dollar Index is a measure of the value of the US dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies.

The baht has been fluctuating significantly since August 30, moving between 33.45 and 33.78 THB per dollar, influenced by global gold prices. On September 6, the baht reached a 19-month high of 33.49 against the dollar. This week, the baht is expected to move within a range of 33.30-34 THB.

According to Kanjana Chockpisansin, head of research for banking and the financial sector at K-Research, key factors to monitor include the new government's economic policies, foreign fund flows, global gold price movements and US economic data.

Poon Panitchpibun, a money market strategist at Krungthai Global Markets, said the baht's significant depreciation is linked to movements in the dollar and gold prices based on US economic data.

In August, US non-farm payrolls increased by 142,000 positions, lower than the market expectation of 160,000, but employment rates improved in some segments.

Given this scenario, some investors revised their view, anticipating that the US Federal Reserve (Fed) will not cut its policy rate by 50 basis points, as previously expected, thereby supporting a stronger dollar compared to the baht.

TTB Analytics projects that the baht will continue to experience volatility, largely driven by the dollar in line with the Fed's policy rate direction and the upward trend in global gold prices./.

VNA

See more

Cambodian workers collect salt from the fields ready to store it in warehouses in Kampot province. (Photo: Phnom Penh Post)

Adverse weather drives fall in Cambodia’s salt production

March to April is the full time for salt harvesting, but in March, there was a sudden rain in a day that disrupted the production for a week and 10 days, he said, adding that in April, it rained continuously, so the association decided to finish the harvest by the end of April.

Through the ASEAN Economic Community Strategic Plan, ASEAN member countries aim to significantly enhance intra-regional trade by building greater resilience to external shocks and promoting the connectivity of the common market for goods, services and investment. (Photo: VNA)

ASEAN poised for greater role in global economy

ASEAN is a peaceful region, which makes it a conducive location for foreign direct investment and business ventures that can come from across the globe, said the chief economist of Bank Muamalat Malaysia Berhad.

Indonesian Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono atUNOC-3 at Port Lympia, Nice, France. (Photo: ANTARA)

Indonesia reaffirms sustainable ocean management commitment at UNOC-3

Indonesia implements blue economy concrete actions, such as expanding marine conservation areas to cover 30% by 2045, implementing responsible quota-based fisheries, promoting sustainable aquaculture, monitoring coastal ecosystems, and involving communities in reducing plastic waste in seas.

Cargo at Long Beach Port, California, the US. (Photo: Xinhua/VNA)

ASEAN accelerates trade talks with US ahead of tariff suspension deadline

According to the earlier US tariff announcement, Cambodia encounters the highest rates of 49%, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), and Indonesia (32%). Meanwhile, Malaysia, Brunei, the Philippines, and Singapore face lower rates ranging from 10% to 24%.

At the panel discussion (Photo: VNA)

Indonesia seeks urban infrastructure to combat flooding

Indonesia, with over 17,000 islands, is among the countries most vulnerable to rising sea levels, storms, flooding and seismic activity. Jakarta, in particular, is experiencing severe land subsidence — with some areas sinking by as much as 25 centimetres per year — which, coupled with tidal surges, has led to increasingly frequent and severe flooding.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz (Photo: Bernama)

Malaysia to hold second round of trade talks with US

Malaysia has expressed its readiness to negotiate in four key areas: addressing the US’s reported 24.8 billion USD trade deficit with Malaysia, removing non-tariff barriers, strengthening protections for technology and national security, and exploring the possibility of a bilateral trade agreement.

Thailand tightens e-commerce rules

Thailand tightens e-commerce rules

The Thai government has vowed to more closely supervise those deemed to be “high impact” platforms with a large number of consumers, seeking to address subpar products in an effort to protect the customer interest.

OSZAR »