The Thai baht traded within a narrow range against the US dollar amid fluctuating investor sentiment, while the stock market rebounded. KResearch predicts continued monitoring of currency movements and foreign fund flows.
Key Points
- The Thai baht traded within a narrow range of 31.20 to 31.55 per US dollar, reflecting global market influences. KResearch forecasts a trading range of 31.00 to 31.70 per dollar for next week, anticipating support for the SET Index at 1,260 and 1,250 points.
- Factors influencing the baht included strong global gold prices and dovish comments from the Bank of Thailand. The currency rebounded toward the week’s end after the US dollar faced selling pressure, closing at 31.39 per dollar.
- The SET Index experienced fluctuations due to domestic selling pressures but recovered thanks to foreign buying, closing at 1,275.60 points. Average daily trading value decreased to 40.15 billion baht. Investors will monitor foreign fund flows and upcoming key US economic data.
Market Overview of the Thai Baht and Stock Exchange Movements
The Thai baht has been exhibiting limited fluctuations, trading between 31.20 and 31.55 per US dollar over the past week. This stability is attributed to the currency’s initial strengthening linked to surging global gold prices, which reached record highs, coupled with a weakened US dollar due to uncertainties surrounding the Federal Reserve’s stance. However, the baht softened midweek after dovish comments from the Bank of Thailand governor raised concerns about potential interest rate cuts, influencing investor sentiment. Towards the end of the week, the baht regained some strength, closing at 31.39 per dollar compared to 31.43 the previous Friday.
Stock Market Dynamics and Future Expectations
The Thai stock market also saw a rebound, closing up 1.72% on January 16, despite early week declines due to domestic selling pressure, particularly in health-related stocks amid concerns over policy changes. This selling was further fueled by profit-taking in retail and electronics sectors. The recovery was led by foreign investment focusing on energy and finance stocks, driven by higher global oil prices amid geopolitical tensions. The Stock Exchange of Thailand (SET) Index is projected to face support levels at 1,260 and 1,250 points and resistance at 1,285 and 1,300 points, as observers watch for shifts in foreign fund flows, economic indicators, and global market sentiments.
