Bangkok:The Thai baht weakened to 33.60 today, influenced by a stronger US dollar and indications from the Federal Reserve that it may increase interest rates in December.
According to Thai News Agency, the Thai baht fell to approximately 33.58-33.60 baht per US dollar this morning, continuing its decline from the previous close in New York. This depreciation is attributed to the strengthening of the US dollar, driven by a surge in US government bond yields. The 2-year bond yield increased by 18 basis points to 4.74%, while the 10-year yield rose by 11 basis points to 4.99%, amid market expectations of a potential interest rate hike by the Federal Reserve in December.
Christopher Waller, a member of the Federal Reserve's board, has expressed support for a 0.25% interest rate hike and is open to considering a larger increase if inflation rates exceed expectations. The US Consumer Price Index (CPI) for October showed a month-on-month increase of 0.4%, surpassing market estimates of 0.3%.
Kasikorn Research Center has projected the Thai baht's trading range for today to be between 33.50 and 33.70 baht per US dollar. Factors such as foreign investor fund flows, the Middle East conflict, specifically US-Iran negotiations, and comments from other Federal Reserve officials are being closely watched for their potential impact on the baht's movement.