The baht opened this morning at 33.83 per dollar, slightly weaker from the previous close of 33.81. Strategists at Krungthai GLOBAL MARKETS, Krung Thai Bank, noted that the baht moved in a range of 33.79 to 33.87 per dollar, pressured by a stronger dollar and the US 10-year bond yield rising to 4.70 percent amid concerns over escalating Middle East tensions. This follows President Donald Trump threatening a major attack on Iran, pushing Brent crude oil prices back above 100 dollars per barrel. However, the baht's depreciation was slowed by heavy selling of major tech stocks in the US market, where the Nasdaq Composite tumbled 2.15 percent, the S&P 500 fell 1.21 percent, and the Dow Jones dropped 0.97 percent. In European markets, the STOXX 600 index declined 1.18 percent on inflation worries and disappointing earnings. Gold prices continued to slide toward the 4,050 dollars per ounce zone, pressured by the stronger dollar and higher bond yields. KTB assesses that in the short term, if the Middle East situation intensifies, the baht could weaken to test or breach the resistance level of 34.00 per dollar, especially if attacks on energy infrastructure disrupt global supply, potentially driving crude oil above 125 dollars per barrel. But if the situation does not escalate significantly, the baht will trade sideways with resistance at 33.85 to 34.00 and support at 33.65 per dollar. The bank reiterated that the baht cannot strengthen sustainably until the Middle East situation de-escalates, which may take at least two months. The baht's 24-hour range is expected at 33.75 to 33.95 per dollar.
Krung Thai Bank Public Company LimitedKTB's strategists assess baht weakening due to Middle East tensions and stronger dollar, but the bank's own business impact is mixed (higher rates may help margins, but currency volatility could affect operations).