The baht strengthened, supported by gold prices above $4,400, but volatility is a risk.

Kasikorn Research Center reports that the Thai baht strengthened, supported by gold prices above $4,400, but the appreciation was limited due to the Middle East and the impact of Hormuz on oil prices. Fund flows are being monitored.

Aug 11, 2569 Dr. Kanchana Chokpaisansin, Research Director, Kasikorn Research Center revealed that The Thai baht was trading at approximately 32.97-32.99 baht per US dollar this morning (8:50 AM), compared to yesterday's closing level of 33.00 baht per US dollar.

The Thai baht fluctuated within a narrow range but remained supported by strengthening sentiment following the rise in global gold prices [Spot Gold increased to above $4,400 per ounce].

However, the overall movement of Asian currencies (including the Thai baht) is likely to remain within a relatively limited range of appreciation amid concerns over the unresolved situation regarding the reopening of the Strait of Hormuz and signs of tension in the Middle East, which pushed global oil prices up by about 5% last night. [BRENT October delivery closed at $87.72, while WTI September delivery rose to $82.13 per barrel].

Furthermore, the direction of the yen needs to be monitored after it began to weaken again. This comes as Japanese authorities and the US Treasury Secretary have once again warned of the possibility of intervention if the yen exhibits unusual volatility.

For today's trading range, the initial estimate is 32.95-33.10 baht per US dollar. Key factors to monitor include foreign fund flows, the situation in the Middle East, the RBA meeting results, and US economic data such as the weekly private sector employment figures reported by ADP and July's existing home sales data.

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