Thai Baht Rises Amid Reduced Rate Hike Expectations

The Thai baht strengthened against the US dollar last week, trading at 32.91 per dollar by September 4. This came as the Japanese yen gained strength and expectations of a Federal Reserve rate hike this month decreased.

Kasikorn Research Center reported that the baht initially weakened to a nearly one-month low of 33.38 per dollar due to falling gold prices, a stronger US dollar, and Middle East tensions. However, it later recovered alongside other Asian currencies and rising gold prices.

The Thai stock market was volatile, with the SET Index closing at 1,595.58 points on September 4, up 0.46% from the previous week. Foreign investors were net buyers of Thai equities worth 3.148 billion baht but recorded net outflows of 5.881 billion baht from the Thai bond market.