Tue, October 26, 2021

in-focus

Baht unchanged, currency 'may benefit' from international stimulus packages


The baht opened at 29.93 to the US dollar on Thursday, unchanged from Wednesday’s close.

The Thai currency is likely to move between 29.80 and 30 on Thursday, said Jitipol Puksamatanan, the head of the “Easy Invest” team at SCB Securities.

He said the baht will not move in wide range in the short term, and suggested investors monitor the direction of Asian currencies and stock markets.

Jitipol believed that the result of the US senatorial election would give investors hope and they would stop selling their Asian assets.

He advised investors to monitor financial stimulus packages in the US and other countries in the short term. He explained that these packages could stimulate capital flow into the Thai market and at the same time support the baht.

Jitipol also said the market is monitoring the current political turbulence in the US. However, the situation will affect the market only slightly, he predicted.

The S&P 500 Index on Wednesday night increased by 0.57 per cent and the Stoxx 600 by 1.37 per cent.

Meanwhile, the US Ten-Year Treasury yield increased by 8 basis points to 1.03 per cent, the highest point from March 2020. The gold price meanwhile dropped to $1,920 (Bt57,494) per ounce, while the price of Bitcoin reached a new high of $36,000 (Bt1,078,019).

Jitipol said the dollar had weakened slightly due to the political situation in the US. Some investors were concerned after the ADP national employment report showed a decrease in employment in the last month, he added.

Published : January 07, 2021

By : THE NATION