KResearch Expects Baht to Fluctuate in 33.55-33.70 Range per Dollar, Watching Gold Slide and US Yields Surge

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Kasikorn Research Center, or KResearch, estimates that the baht today will move within a range of 33.55 to 33.70 baht per dollar, after this morning trading at around 33.62 to 33.64 baht per dollar, compared with yesterday's market close of 33.70 baht per dollar. The baht strengthened slightly, in line with the yen's appreciation amid concerns over intervention by Japanese authorities, but it still faces depreciation pressure from the decline in global gold prices. Meanwhile, oil prices rebounded on signs of tension in the Middle East, following reports that the United States may consider striking Iran before the midterm elections, with Brent crude holding above 101 dollars per barrel. The dollar remains supported by rising US bond yields amid expectations that US interest rates will stay high and that the Fed still has room to keep raising rates in the period ahead, even if not at this month's FOMC meeting, after the Fed meeting minutes reflected that the majority agreed on the need to raise rates before year-end. Yesterday, 10-year and 30-year US bond yields hit new 24-year highs of 5.35% and 5.72% respectively. Key factors to watch include the situation in the Middle East, foreign fund flows, the direction of US bond yields, and US weekly jobless claims figures.

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Baht faces depreciation pressure from falling gold prices and rising US yields, though it firmed slightly with the yen; dollar supported by high US rates.