Baht strengthens in line with stock markets
The baht on Tuesday (March 31) opened at Bt32.63 to the US dollar, strengthening from the last close of Bt32.66 on Monday (March 30).
SCB Securities senior market strategist Jitipol Puksamatanan predicted that the baht would move between Bt32.50 and Bt32.75 per US dollar on Tuesday.
On Monday night, the S&P 500 and Euro Stoxx 50 rose by 3.4 per cent and 1.3 per cent, respectively. Meanwhile, the bear market rally caused the US 10-Year Treasury to rise to 0.72 per cent, although the price of WTI crude oil fell by 6 per cent, since its production this time has not been stored.
An interesting point of discission in financial markets has been the direction of the US dollar, which has strengthened by 0.7 per cent from US stock market’s situation and western investors’ confidence.
Recently, President Donald Trump prolonged Covid-19 preventive measures to the end of April, lifting the market’s confidence.
In addition, the baht and other Asian currencies this time were believed to be traded in line with the capital market’s direction and the US dollar.
The stocks’ growth would support the baht’s weakening slightly, the strategist said. Moreover, the oil price, which would continue falling, would be a factor in Thailand’s trade surplus in 2020, and a positive factor for the Thai currency in the long term.