Mon, December 06, 2021

business

Baht rises on dollar sales due to Fed's fiscal policy


The baht strengthened to 29.90 to the US dollar due to mass sell-offs of the dollar on Monday.

Kasikorn Research Centre's research executive Kanchana Chokpaisansilp said the baht is moving in line with other regional currencies, adding that the dollar was pressured by the US Federal Reserve's move to ease its monetary policy.

She expected the Thai currency to move between 29.90 and 30.10, advising investors to follow the global Covid-19 situation and the manufacturing purchasing manager's index for December of China, Europe and the US.

Meanwhile, senior director of the chief investment office at SCB Securities, Jitipol Puksamatanan, said the dollar was pressured by the financial market's risk-on state as the UK pound sterling and Australian dollar were strengthened.

He added that the US 10-year treasury yield stood at 0.91 per cent, but gold price rose over US$1,900 per ounce.

"However, we expect investors to be cautious during the first week of this year in response to the economic slowdown and several countries' lockdowns to curb Covid-19," he said, adding that the Dollar Index was expected to move between 89.4 and 90.4 points this week.

He advised investors to follow the US dollar inflation in December, the Senate election in Georgia and labour market data in December.

Published : January 04, 2021

By : The Nation