The Financial Markets Group at Siam Commercial Bank expects the baht to move in a range of 33.00-33.25 per dollar today, with the baht weakening sharply again in line with crude oil prices that surged close to 109 dollars per barrel after Houthi forces advanced near the Red Sea coastal area close to the Bab-el-Mandeb strait. Meanwhile, Saudi Arabia informed OPEC that its oil production fell further last month to its lowest level since 1990. The US dollar index strengthened after the August producer price index accelerated 0.4% month-on-month, in line with market expectations, pressured by energy prices, while the European Central Bank raised interest rates by 25 basis points to 2.50% and signaled it was ready to raise rates further.
ECB raised rates 25bp to 2.50% and signaled further hikes, pushing euro-area yields up.
