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Baht unchanged, not expected to weaken more than 30.10 per US$


The baht opened at 29.99 to the US dollar on Wednesday, unchanged from Tuesday’s close.

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The Thai currency is likely to move between 29.95 and 30.05 on Wednesday, Krungthai market strategist Poon Panichpibool said.

 

On Tuesday, markets were in a risk-on state as investors hoped Joe Biden’s government would be able to come out with $1.9 trillion (Bt56.9 trillion) in fiscal stimulus.

 

The markets were also supported by company turnovers in the last quarter, which turned out to be more positive than investors expected.

 

The S&P 500 and Nasdaq indexes increased by 1.4 and 1.6 per cent, respectively, while the EU’s Stoxx 50 closed up by 1.7 per cent.

 

The market situation pushed the US Ten-Year Treasury yield to a 2-basis-points increase, to 1.10 per cent. Also, the dollar strengthened compared to other main currencies.

 

Poon said an economic recovery in Asia would slow down slightly in the short term because of Covid-19 preventive measures.

 

In Thailand, the market is awaiting results of a key Bank of Thailand (BOT) meeting. Poon added that the BOT tends to freeze the interest rate at 0.50 per cent and would signal that the Thai economy is worse than expected in December.

 

Poon said the baht would not weaken more than 30.10 per US dollar, despite the dollar strengthening.

Published : February 03, 2021

By : THE NATION