Thai baht weakens ahead of volatile period

One victim invested US$22,000 into bogus savings programme that offered an interest rate above bank rates along with luxury bags and jewellery

The baht has slightly weakened after the US Department of Labour reported on Friday that the US economy had added 222,000 new jobs in June. The US job growth was greater than expected.

The Thai currency weakened yesterday to slightly over 34 per US dollar after it strengthened to over 33 per dollar on Monday.

Amonthep Chawla, head of the research office at CIMB Thai Bank, said the easing might be temporary and the baht would be volatile looking ahead.

The market is waiting to see data on the US gross domestic product in the second quarter and what the Federal Reserve would do about its huge balance sheet, he said.

Thai exporters have previously complained about a strong baht, fearing it would drag down exports in the second half of the year.

Appreciation of the baht would make Thai products more expensive in the global market. A strong Thai baht also makes visiting the country more expensive and is detrimental to the all important tourist industry, whilst affecting the standard of living for expats with a foreign source of income. – Bangkok Jack News Team

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