Fri, October 15, 2021

in-focus

Foreign funds flows expected to prop baht up this year


The baht opened at 29.90 to the US dollar on Tuesday, weakening from 29.88 at close on Monday.

The Thai currency is likely to move between 29.90 and 30 on Tuesday, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

On Monday night, the US financial market was in a risk-off state due to investors’ concerns about the Covid-19 crisis and the important election to the US Senate from Georgia. The S&P 500 dropped to 1.4 per cent, while the VIX market rose to 26.9 points, the highest in two weeks. However, the Stoxx 600 index rose by 0.4 per cent.

The US dollar at the same time strengthened, while the Australian dollar weakened. The British pound also weakened, as the UK completely left the EU.

Meanwhile, gold price rose to $1,945 (Bt58,193) per ounce, as the market believed the inflation rate around the world would increase.

In Thailand, Jitipol informed that the baht this year would be supported by purchasing power of foreign investors in stocks and bonds in Thailand.

He suggested that investors monitor the direction of investment taking place in Thailand. “If there is no unexpected factor occurring in the future, capital will flow continually into Thailand making it more difficult for the baht to weaken.

 

Published : January 05, 2021

By : THE NATION