Baht move in the range of 29.80-30.20 baht per US dollar

Kasikorn Research Centre (KResearch) has estimated that the Thai baht this week (from 15 to 19 August 2011) will move in the range of 29.80-30.20 baht per US dollar with some trade and economic figures as the major focus this week.

KResearch reported that the baht had been weakened last week after the US lost its AAA credibility rating for the first time in the history. The currency depreciated as investors shifted to more secured assets for investment, which could also be seen in the stock market as investors sold Thai shares.

The baht depreciation however was limited in the end of last week before the market closed for long holidays from 12 to 14 August. The baht closed at 29.89 per US dollar on Thursday, compared with 29.84 baht per US dollar a week earlier.

As for this week, the baht is expected to move in the range of 29.80-30.20 baht per US dollar. The international trade figures of Thailand should be monitored for domestic factors.

Meanwhile, external factors that should be focused are still concentrated important economic figures from the US.