Baht strengthens a tad
The baht opened at 29.98 to the US dollar on Wednesday, strengthening from Tuesday’s close of 30.03.
The Thai currency is likely to move between 29.90 and 30.10 on Wednesday, Krungthai market strategist Poon Panichpibool said.
On Tuesday night, financial markets were in a risk-on state again amid investors’ hopes that Joe Biden’s government would come out with economic stimulus measures.
The S&P 500 increased by 0.8 per cent, reaching a new recent high, supported by tech and energy stocks. This also led to a 1.3 per cent price rise to $53 (Bt1,589.50) per barrel of WTI crude oil. Meanwhile, the US Ten Year Treasury yield grew by only 0.03 basis points to 1.09 per cent, Poon said.
At the same time, investors off-loaded dollars after nominee for Treasury Secretary Janet Yellen stated she wanted the currency to move in line with market mechanisms. This led to the dollar weakening by 0.3 per cent, compared to other currencies.
Poon mentioned markets would monitor Biden’s assumption of the presidency and the measures he would take in the first hundred days of his government.
In Thailand, the baht continued to move in line with foreign fund flows, which depend on the Covid-19 situation in the country.