The Thai Baht opened on February 4, 2025, at 33.86 THB against the US Dollar, showcasing a slight appreciation from the previous day's close of 34.04 THB. According to Mr. Poon Panitpipat, Currency and Capital Market Strategist at Krungthai Global Markets, this strengthening was due to various factors, including the weakening of the US Dollar and positive developments from recent trade negotiations between the United States, Mexico, and Canada.
Mr. Poon noted, "The Thai Baht opened at the level of 33.86 THB per Dollar, strengthening from the previous close at the level of 34.04 THB per Dollar." This change is notable within the broader financial climate characterized by fluctuations caused by governmental decisions and economic reports.
The market reacted favorably following President Donald Trump's announcement to delay tariff increases on goods imported from Mexico and Canada for 30 days. This move appears to have eased apprehensions surrounding the administration’s trade policies, allowing the Baht to stabilize within the range of 33.81 to 34.05 THB against the Dollar.
Contributing to the foreign exchange dynamics, the US Dollar weakened, which also led to gold prices rebounding above $2,800 per ounce. This interplay between currency values and commodity prices showcases how global economic policies can affect local financial markets significantly.
Looking forward, analysts predict cautious behavior among market participants as they await three significant US economic data releases: Durable Goods Orders, Factory Orders, and Job Openings reports for December. Mr. Poon emphasized, "Players in the market should be cautious of volatility as they absorb US economic data reports tonight, including Job Openings and Factory Orders." This highlights the interconnectedness of global financial markets and the importance of these indicators.
Experts warn of potential two-way volatility, driven by uncertainty surrounding the US administration's trade policies. Investors are urged to remain vigilant, particularly if the government escalates tariff strategies or engages with China. Such actions could change the outlook for Asian currencies, including the Thai Baht.
Recent trends show fluctuations are common, especially within the volatile market conditions expected amid the Trump administration's unpredictability. Mr. Poon reiterated the importance of strategic risk management, as uncertainty could lead to market swings, affecting trading patterns.
Overall, the current market environment for the Thai Baht appears stable, with promising signs for gradual strengthening, especially if the economic data releases align favorably. Investors and traders will continue to monitor developments closely, with analyses anticipating movement within the 33.75 to 34.00 THB range over the next 24 hours.
Market participants remain alert to the reactions arising from the anticipated US economic reports. Forecasts suggest movements around +/-0.20% within 30 minutes after the release of key data, reinforcing the necessity for vigilance among traders. The capacity for the Baht to strengthen or weaken will largely depend on both local dynamics and overarching global economic shifts.