Kasikorn Research Center reported that the baht touched its weakest level in a month and a half at 33.43 baht per US dollar before closing at 33.34 baht per dollar, compared with yesterday's close of 33.28 baht per dollar. The baht weakened past the 33.40 baht per dollar level in early trading after the US Federal Reserve's policy meeting, at which the Fed took a hawkish stance and voted to raise its policy rate to 3.75-4.00%, while signaling one more rate hike before the end of 2026. However, the baht pared its losses and recovered somewhat in the afternoon, tracking global gold prices, in contrast to global oil prices, which slipped on reports that Saudi Arabia will deliver additional crude oil via Oman, helping ease concerns about tight supply. As for fund flows today, foreign investors were net buyers of Thai stocks and bonds to the tune of 1.651 billion baht and 623 million baht, respectively. For the baht's trading range tomorrow, an initial estimate is 33.20-33.50 baht per dollar. Key factors to watch include the outcome of the Bank of Japan's policy meeting, foreign fund flows, the situation in the Middle East, and US industrial production data for August.
Fed hiked to 3.75-4.00% and signaled one more hike before end-2026, lifting the policy rate.
Hawkish Fed hike and signal of another hike push Treasury yields higher.
