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December 31, 2019<\/span><\/p>\n The baht finished in spectacular fashion after a year as one of the world\u2019s most stable currencies, when it reached 30.15 baht against the US$, its highest level in six years.\u00a0Kasikornbank Bank is forecasting that the Thai baht could move into a range of 30-30.30 baht to the dollar this week (up to January 3).<\/p>\n Investors have been selling USD after US economic data showed signs of disappointments such as weaker-than-expected orders for durable goods and lower new-home sales, finishing off a patchy year in a jittery US economy. The baht was up 8% over this year after a 2018 closing price of 32.55 baht to the US$.<\/p>\n The Thai baht\u2019s appreciation has been driven by the Thailand\u2019s strong current account surplus and investor sentiment that the baht has been a \u2018safe-haven\u2019 currency. But the baht\u2019s strength has been challenging for the local economy, driving exports down and pushing up prices for tourist spending ppower.<\/p>\n Thai exporters have complained that the baht\u2019s appreciation is hurting exports: recently Japanese car manufacturers Mazda said it might have to move a part of its car making back to Japan from its Thai factories due to the impact of the strong baht.<\/p>\n The market will be closely watching the Bank of Thailand\u2019s economic report for November, which is due to be released on Monday, as well as December\u2019s inflation rate.<\/p>\n Meanwhile, key US economic data out this week include the US purchasing managers index, December consumer confidence index, home-purchase contracts, home price index and jobless benefits claims.<\/p>\n