The baht opened this morning at 33.47 per dollar, slightly stronger from the previous close of 33.57 per dollar. Krungthai Bank estimates today's trading range at 33.40 to 33.65 per dollar. The strengthening was driven by a weaker dollar and a rise in gold prices, as markets gradually digested the outcome of the FOMC meeting, which voted 9 to 3 to hold interest rates at 3.50 to 3.75 percent as expected. Meanwhile, the Fed chair's remarks did not give a clear signal on the rate outlook, but markets interpreted that higher bond yields could help offset monetary policy actions. Krungthai Bank views that the baht still faces two-way risks in the short term, depending on US economic data and the still-uncertain situation in the Middle East.
Baht strengthens due to weaker dollar and higher gold prices, with FOMC holding rates and no clear signal on outlook.
Gold prices rise, which is cited as a driver for the baht's strengthening.
