Baht opens stronger at 33.64 per dollar after US bond yields hit multi-decade high

Kaohoon··THUS·Read original
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Summary · why it matters

The baht opened this morning at 33.64 baht per dollar, strengthening from yesterday's close of 33.72 baht per dollar, according to the Money Market and International Transactions Business Division of TMBThanachart, or ttb. The dollar strengthened against major currencies after the yield on 10-year US government bonds surged to 5.350%, the highest level since 2002, supported by expectations that the Fed will raise interest rates again this year. The minutes of the Fed's September meeting showed that committee members were divided on the reasons for a 0.25% rate hike, with some seeing it as a way to limit the impact of the energy price crisis, while others viewed it as a move to curb demand-driven inflation. Meanwhile, the CME Group's FedWatch Tool indicated that investors priced in only a 17.2% chance of a rate hike at the October meeting, down from 37.6% a week earlier, but assigned an 85% probability to a hike at the December meeting. As for foreign investors' portfolio positions, yesterday they were net buyers of 1.72 billion baht of Thai stocks and net buyers of 6.267 billion baht of Thai bonds.

Impact on assets 5

Carbon Removal (DAC)▲
Financials▲
Others▲
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Fed minutes show members divided but markets price an 85% chance of a December hike, supporting higher policy rates.

Others▲
💱US Dollar/Thai Baht FX Spot Rate
USDTHB
▲ PositiveMonetaryrelevance

Dollar strengthened against major currencies on surging US bond yields and Fed hike expectations, pushing USD/THB higher despite the baht's opening gain.