Swiss firm sees continued baht rise

Swiss firm sees continued baht rise

Swiss wealth and asset manager Lombard Odier is bullish on the baht, reckoning the currency will run up further to surpass 30 to the US dollar by year-end.

Lombard Odier predicts the baht to keep rising to a range of 29.59-29.89 against the greenback by the end of 2019, said Homin Lee, head of portfolio solutions for Asia and Asian macro strategy. 

The baht is the top-performing currency in Asia, gaining about 6% this year to hit a fresh six-year high of 32.52 to the dollar. The currency strengthened 2.5% in the three months to June, the fastest pace among emerging Asian peers.

Lombard Odier's forecasts are based on the assumption that the US Federal Reserve cuts rates and the dollar retreats.

The Fed is widely expected to cut its key rate twice this year, by 25 basis points each time, Mr Lee said, adding that the first cut is expected by September and the other by December.

The stronger baht will boost Thailand's purchasing power and open more opportunities for domestic investment, particularly infrastructure megaprojects in the Eastern Economic Corridor, he said.

Such a result would add an engine to the Thai economy in addition to exports, Mr Lee said.

Do you like the content of this article?

10,288 new Covid cases, 101 more deaths

Thailand logged 10,288 new Covid-19 cases and 101 more fatalities during the previous 24 hours, the Public Health Ministry announced on Monday morning.


FTI helps with waste projects

The Federation of Thai Industries (FTI) is preparing to help reduce plastic waste under a new public-private collaboration that sees 68 municipalities countrywide serve as a model for sustainable plastic management.


Brand partnerships become flavour of the month

Rather than compete, the outbreak has led marketers to collaborate on several ventures.