Baht strengthens as investors advised to monitor capital inflows

The Thai currency is likely to move between 29.93 and 30.13 on Wednesday, predicted Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

On Tuesday, some of the main global stock markets recovered. The S&P index increased by 1.3 per cent as investors hoped the US government would come out with a new economic stimulus package. The Stoxx 600 Index and the price of WTI crude oil and gold meanwhile rose by 0.3 per cent, 1.2 per cent and 1.4 per cent, respectively.

The risk-on state of the financial market helped the US Ten-Year Treasury yield increase by 0.91 per cent. The dollar weakened by 0.4 per cent, while the pound strengthened by 1 per cent amid hopes that the UK and the EU would finally agree on Brexit terms by the end of the year.

Jitipol reported that the baht has moved in a narrow range from the beginning of the week. He suggested investors monitor capital inflows into the market on Wednesday as this may pressure the baht to strengthen.