The Global Markets team at Bank of Ayudhya, or BAY, expects the baht to move within a range of 33.15 to 33.65 baht per dollar this week, compared with last week when the baht closed weaker at 33.35 baht per dollar after trading between 33.11 and 33.49 baht per dollar. The dollar strengthened against all major currencies, while the 10-year US Treasury yield surged to its highest level in 19 years, amid volatile oil prices following reports of an attack on an alternative route for Saudi Arabia's oil exports that bypasses the Strait of Hormuz, and as the US-China trade war reached a truce extending to January 10, 2027. Foreign investors sold 3.584 billion baht of Thai equities but bought 469 million baht of bonds. Key drivers this week will be major US economic data, including the ISM manufacturing index and September non-farm payrolls. If the data remains strong, it will support the view that the US Federal Reserve is likely to keep monetary policy tight for an extended period. Domestically, investors will watch August current account figures after the Commerce Ministry reported that exports expanded 24.3% year on year and imports rose 25.1%, narrowing Thailand's trade deficit to 2.48 billion dollars in August.
Bank of Ayudhya PCL10-year US Treasury yield surged to a 19-year high on expectations the Fed keeps policy tight, pushing the yield up.
Dollar strengthened broadly and strong US data support extended Fed tightness, favoring USD over THB.
