Bangkok: The baht experienced a slight depreciation after reaching its strongest position in over seven months. The currency moved to approximately 32.80-32.82 baht per dollar this morning, closely aligned with yesterday's closing rate of 32.83 baht per dollar, following its peak at 32.54 baht per dollar. The weakening prompted the Minister of Commerce to urge the Bank of Thailand to address the currency's decline. According to Thai News Agency, Ms. Kanchana Chokpaisansin, Research Manager at Kasikorn Research Center, noted that the baht's depreciation was in line with profit-taking in the global gold market, which saw gold's spot price fall below the 3,300-dollar/ounce level. Additionally, favorable US economic indicators, such as the preliminary PMI index for May and weekly jobless claims, buoyed the US dollar. Despite this, the dollar's overall sentiment remains fragile, with ongoing market interest in the US's fiscal future. Today's baht movement is expected to be within the 32.70-33.00 baht per dollar range. Key factors to monitor include global gold price trends, foreign fund flows, trade war developments, proposed US tax rate reductions, statements from Federal Reserve officials, and April's new home sales figures in the US. Mr. Poon Panichpiboon from Krungthai GLOBAL MARKETS at Krungthai Bank reported a continuous weakening of the baht, corresponding with a dollar rebound and declining gold prices. Minister of Commerce Mr. Pichai Naripthaphan has expressed a desire for the Bank of Thailand to maintain the baht at a level of 36.00-37.00 baht per dollar. The baht's depreciation seems limited around the 32.95-33.00 baht per dollar resistance zone. In the US stock market, caution persists following the House of Representatives' approval of tax and spending bills, leaving some market participants wary about the government's fiscal stability. In the bond market, while the 'Fiscal Bill' was passed, concerns about fiscal stability remain. The recent decrease in the US 10-year bond yield from the 4.60% to 4.53 % zone has captured market attention. The bond yield may still experience volatility if fiscal stability concerns escalate, yet any increase in the yield could present opportunities for gradual investments.
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