Baht strengthens

Research Executive Kanchana Chokpaisansilp explained that the strengthening baht was in line with a recovery in risk assets, after news that a possible Covid-19 vaccine was seeing success and has stimulated the selling of the dollar on the market.
The baht opened at 32.00 to the US dollar this morning (May 19), strengthening from Monday’s close.

The Thai currency is expected to move between 31.85 to 32.35 this week, SCB Securities senior market strategist Jitipol Puksamatanan said.
On Monday night, international financial markets reacted positively to news that a possible Covid-19 vaccine was successful in tests earlier than expected. The S&P 500 rose by 3.1 per cent, while the Euro Stoxx 50 grew by 5.1 per cent. Also, US and German Ten-Year Treasury yields increased to 0.72 per cent and minus 0.47 per cent, respectively.
The stocks situation has seen a $10 decrease in the gold price to $1,735 (Bt55,504) per ounce, and pushed the price of Brent crude oil to $35 per barrel, Jitipol said.
The Office of the National Economic and Social Development Council on Monday announced that Thailand’s Gross Domestic Product in the first quarter of 2020 contracted by 1.8 per cent, compared to the same period in 2019. This was better than the expected minus 4.0 per cent, since private consumption expanded by 3.0 per cent.
The US dollar weakened by 0.7 per cent, but the Australian dollar strengthened, compared to other currencies.
Jitipol forecasts that the baht will be lower than 32 to the dollar, and said investors should monitor the Bank of Thailand’s point of view on the direction of the baht.