Baht depreciates further – Thai stocks fall

The baht depreciates further. amid negative factors flooding the stock market Putting pressure on Thai stocks to fall further Lowest drop in 2 years and 9 months

The baht value today (Oct. 4) reached its weakest level in 11 months, a new time at 37.19, before returning to move around 37.15-37.17 baht per dollar. This morning (10:00 a.m.), the movement followed the US dollar. The dollar index compared to 6 major currencies in the basket increased 0.09% to 107.0062, which is the highest level in 10 months, adjusting in line with the direction. Yields on the 10-year US Treasury note surged to a 16-year high after latest US labor data led markets to expect the Federal Reserve to keep interest rates high for a longer period of time. The baht moves in the same direction as regional currencies. In addition, the Chinese economic numbers are not good. Meanwhile, the Thai economy is expected to recover slowly and no progress has been seen in monetary and fiscal policy.

As for the Thai stock market (SET), this morning the first period fell more than 16 points following the international market and rebounded upwards at 11.14 a.m., dropping only 4.31 points, moving at 1,442.39 points.

Mr. Teerasak Thanawarakul, Director of Analysis at CGS-CIMB Securities, said that negative factors include Fund Flow that continues to flow out. The baht depreciated to 37 baht per dollar. Including the impact on tourism from the shooting incident at Paragon Department Store. They are all pressures. The market has a chance to continue down. The important support level this time is at 1,420 points. If the index goes down to this support level, it will be considered a big downtrend. Then it will gradually bounce back.

“For the SET to rebound, foreign investors will have to sell less. and saw that the baht weakened to 37 baht per dollar The Bank of Thailand is likely to intervene to prevent the baht from depreciating too quickly. This will be a factor causing the market to adjust downward within a limited range,” Mr. Teerasak said.

Source: Thai News Agency