Tue, November 30, 2021

in-focus

Baht rate unchanged as all eyes on key BOT meeting


The baht opened at 29.95 to the US dollar on Thursday, unchanged from Wednesday’s close.

The Thai currency is likely to move between 29.90 and 30.05 on Thursday, Krungthai market strategist Poon Panichpibool said.

On Wednesday, financial markets were in a risk-on state as Joe Biden officially became the US President and investors’ fear of US political turbulence abated after his inaugural statements.

As a result, the S&P 500 index rose by 1.4 per cent, the highest recent increase.

The price of WTI crude oil rose by 0.5 per cent to $53.20 (Bt1,592.41) per barrel, while the yen weakened by 0.4 per cent to 103.5 per US dollar. The dollar itself was stable compared to other currencies, while the Canadian dollar strengthened by almost 1 per cent to C$1.26.

Market strategist Poon suggested that investors should monitor the first 100 days of the Biden administration, any stimulus measures issued by his government and his line-up of ministers. These would also reflect how the US would handle ties with its allies as well as China, he said.

Poon also predicted that the Bank of Japan would freeze its policy rate at -0.1 per cent, and try to control the direction of bonds at the same time.

Meanwhile, the European Central Bank was expected to continue exercising relaxed policies on financial matters amid unsure EU economic recovery.

Poon said financial policies of the two central banks would not be a main factor affecting the direction of the dollar. In fact, it’s Biden’s measures and policies that would effect the US currency more.

In Thailand, the baht would still move in a predictable range as most market players were awaiting the results of a key Bank of Thailand meeting next month, he added.

Published : January 21, 2021

By : THE NATION