Thai currency likely to continue gaining
The currency market had priced in a possible US rate hike next month, but softer economic data have prompted investors to reassess their expectations.
A US-Japan joint intervention to stop the yen's slide is among the reasons the baht has appreciated beyond 33 baht to the dollar, economists say, noting that the Thai currency is likely to continue gaining against the greenback in the near term.Amonthep Chawla, executive vice-president and head of research at CIMB Thai Bank, said recent weaker-than-expected US employment data have eased concerns that the Federal Reserve will raise interest rates in September.
The market had previously priced in the possibility of a rate hike next month, but softer economic data have prompted investors to reassess their expectations.
Consequently, some funds that had previously moved into US assets have started flowing back into emerging markets, providing support for emerging-market currencies, including the baht.
