The baht weakens to its lowest level in more than a week.

Bangkok: The baht reached its weakest level in more than a week at 35.84 baht per dollar. Compared to yesterday's market closing level of 35.62 baht per dollar. Miss Kanchana Chokpaisansin Research executive Kasikorn Research Center stated that the baht weakened in line with the overall picture of other currencies in Asia, contrary to the value of the dollar. and US bond yields that moved up after US economic numbers especially the Producer Price Index and the number of weekly unemployment benefits claims. It came out better than market expectations. The Producer Price Index +1.6% YoY in February (the market expected it to be 1.1% YoY), while the number of weekly jobless claims decreased by 1,000 to 209,000 last week. (lower than market expectations of 218,000) The US numbers are still in good shape. This has caused the market to reduce the possibility of a Fed interest rate cut in June. down, which reflects that The Fed may not be in a hurry to adjust its stance to ease monetary policy at its next meeting . Mr. Poon Panitchpibun, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank, revealed that since the previous night The value of the baht fluctuates and continues to depreciate. (Oscillating in the range of 35.60-35.82 baht per dollar) following the increase of both the dollar and the US 10-year bond yield after the PPI Producer Price Index report and the number of people applying for unemployment benefits (Jobless Claims) came out. Better than expected This makes market players worried that The Fed may be in no hurry to cut policy interest rates. This is reflected in the gradual reduction in the chances of the Fed cutting interest rates at the June meeting to 63% (from nearly 75% in the previous week), causing the dollar to continue strengthening. If the baht faces additional pressure from transaction flows for purchasing commodities such as gold and crude oil, Including the selling pressure of Thai assets from foreign investors. It may be pressured. The baht fluctuated and weakened, test ing important resistance and psychological resistance around 36.00 baht per dollar. 'We would also like to emphasize that during this period, the volatility of the baht is higher than the historical average. (Looking at the weekly baht frame) clearly causing us to maintain the advice that Entrepreneurs should use a variety of hedging tools, such as Options, to increase efficiency in hedging against exchange rate risk. And in addition to using the aforementioned tools Choosing to transact in local currency is another interesting way to manage exchange rate risk. Entrepreneurs should compare transaction costs and risk prevention plans before making a decision every time,' Mr. Poon said.-511-Thai News Agency Source: Thai News Agency