reader Posted June 24, 2022 Share Posted June 24, 2022 From Bangkok Post Kasikornbank (KBank) expects the baht to bottom out in the next two months, depending mainly on the US Federal Reserve's benchmark interest rate hike. It also expects the Bank of Thailand to increase its benchmark interest rate two times this year. KBank assesses the Monetary Policy Committee (MPC) will increase its policy rate by a quarter-point at its meeting in August. Aggressive rate hikes by the Fed would strengthen the US dollar compared with other currencies, including the baht, said Mr Kobsidthi. In this scenario, he said the baht would continue to weaken for the next two months and it could reach a nadir of low 36 against the greenback. The Bank of Thailand will need to manage the local currency to make it move in line with regional peers, said Mr Kobsidthi. An improving tourism sector in the second half of this year will continue to support a firmer baht to the dollar, reaching 33.5 against the dollar at the end of this year, said KBank. Quote Link to comment Share on other sites More sharing options...
