Baht to resume weakening trend
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The Thai baht would soon lose its strength and weaken against US dollar despite the recent appreciation, Siam Commercial Bank's economic team said.
In a research note released today, the economists said that they maintained the view that the US Federal Reserve would raise interest rate this year. They anticipated a 50-basis point increase throughout this year. Hence, the baht could weaken to Bt37 per dollar at the end of this year.
It said that the recent surge of the Thai currency, from Bt36.1 in January to Bt35.4, would be temporary as it was driven mainly by the anticipation that the Fed would postpone rate hike. In the same period, the dollar also weakened against other currencies in light of greater risks in the global financial markets.
