Bangkok November 2018

BUSINESS SUPPLEMENT
FOREIGN CURRENCY UPDATE
TheU.S Dollar has remained
well bid as expected due to a
rise in interest rates in America.
The DXY Dollar index, (an index
that measures the US Dollar’s
valueagainst a number of other
currencies), rose from 94.31 to
hit a high of 95.76 before settling
at 95.23. Yields on
the 10-year treasury
rose to a 7-year high
of 3.24 per cent before
dropping back to 3.16
per cent. In this environment,
especially
with increased volatility
the U.S. Dollar is likely
to take its cue from
the bond markets, but
overall will still be likely
well supported by
the prospect of higher
yields. Against the
Thai Baht, the U.S.
Dollarrose from a low
of 32.23 to 33.07 before pulling
back to 32.75.
The British Pound did manage
to build on recent gains,
but trade has been choppy and
range bound. Against the US
Dollar the Pound moved from
1.3073 to a high of 1.3266 before
giving back all of its gains
to hit a low of 1.2832. The value
of the pound will likely remain at
the bidding of the Brexit story.
Against the Thai baht, the pound
moved from 42.66 to a high of
43.69 before giving up some of
its gains to end at 43.05
The U.S. Dollar vs. Japanese
Yen cross rate has been
very volatile of late moving from
111.68 to a high of 114.51 before
erasing almost all of the gains
and moving to 112.17.
When the cross rate rises it
means 1 U.S. Dollar buys more
Yen and therefore the Yen has
weakened against the U.S Dollar,
which is in keeping with the
stronger DXY index as noted
above. Against the Thai Baht,
the Yen has been remarkably
flat, moving from 0.2893 to
0.2903 and then back to exactly
the same level it started at
0.2893. This is in keeping with
the Yen’s move against the US
Dollar.
The Russian Ruble has
seen volatility collapse with the
currency trading within a 1-ruble
range all month. It moved
from 66.19 to the US Dollar to
a high of 66.37 before falling to
66.05. The range has been one
of the tightest for many months,
surprising many market participants
after a very volatile
period in the month
before. Against the Thai
baht the Ruble picked
up slightly from 0.4822
to 0.4959
The Eurohas made
some interesting moves
against the US Dollar
actually getting stronger
compared to its US
counterpart even while
the US Dollar was gaining
ground. It moved
from 1.1633 to 1.1794
before reversing the
gains to settle at 1.1569.
Against the Thai baht the Euro
weakened from 38.06 to a low
of 37.26 before turning higher to
reach 37.81.
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