Baht may test 32 per US dollar

Heavy selling of the greenback

- NAREERAT WIRIYAPONG

The baht could appreciate to test 32 to the US dollar or beyond with the greenback set to weaken amid mounting pressure on the Federal Reserve to cut the US interest rate at its September meeting, according to analysts.

Following the Bank of Thailand's policy rate cut of 25 basis points (bps), which typically weakens the Thai currency, the baht moved in a range of 32.24-26 to the dollar in morning trade yesterday, compared with Wednesday's close of 32.31 baht in offshore markets, according to Kasikorn Research Center (K-Research).

Most Asian currencies jumped yesterday, led by the Indonesian rupiah and Malaysian ringgit, as the US dollar slipped to multi-week lows.