Baht move in the range of 30.50-30.90 baht per US dollar this week

Kasikorn Research Centre (KResearch) has estimated that the Thai baht this week (from 4 to 8 July 2011) will move in the range of 30.50-30.90 baht per US dollar, suggesting that the political situation after the election be monitored closely.

KResearch reported that the baht weakened to almost 31 baht against the greenback last week due to rising demand for US dollars among importers in the end of the month while gold traders were buying more US dollars after the global gold price fell dramatically.

The selling force of the Thai baht in the beginning of last week was corresponding to foreign selling in Thai stock as investors were monitoring the situation before the election. The baht closed at 30.70 per US dollar on Thursday, compared with 30.64 baht per US dollar on the previous Friday, 24 June.

As for this week, the baht is expected to move in the range of 30.50-30.90 baht per US dollar. Domestic factor that should be monitored is the situation in Thailand after the general election.

Meanwhile, external factors that should be focused are still concentrated on the Greek debt crisis, investment in risk assets in the global market and important economic figures from the US, plus the meeting result of the European Central Bank.