Baht expected to gain as big exporters return to the market

The baht is expected to move between Bt32.03 and Bt32.23 to the dollar today, SCB Securities senior market strategist Jitipol Puksamatanan said.
On Tuesday night, the financial market returned to a risk-off state, due to concerns of a second outbreak of Covid-19 and the Fed’s opinion that US commercial banks stop paying dividends to prevent a lack of liquidity in the future.
The S&P 500 fell by 2.1 per cent and the US Ten-Year Treasury yield was pressured to fall by 5.4 basis points, or to 0.66 per cent.
In the financial market, the dollar fluctuated. The currency weakened by 0.3 per cent, compared to other main currencies, after US President Donald Trump wanted the Fed to use a negative interest rate policy to stimulate the US economy.
Then, the dollar strengthened by 0.1, after several Fed committees did not agree with the president’s idea.
The baht has strengthened continually and capital has this time flown to the bond, after the government eased lockdown measures.
The returm of big exporters to the market is another factor in strengthening the baht.
The SCB strategist said that the baht would not weaken to Bt33 per US dollar, if the lockdown measure was not used again within one or three months.