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Baht unchanged, but ‘could weaken’

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The baht opened at 30 to the US dollar on Thursday, unchanged from Wednesday’s close.

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The Thai currency is likely to move between 29.95 and 30.10 on Thursday, Krungthai market strategist Poon Panichpibool said.

 

In the short term, the baht’s “reflation trades” status is likely to see a reduction. Investors estimated that the dollar weakened due to an economic recovery in some countries and relaxed polices in the United States.

 

The present situation will influence investors to sell their risky assets, likely leading to foreign fund flows out of Thailand and weakening the baht, Poon explained.

 

He also said the baht would at most weaken to 30.10 per US dollar.

 

The S&P 500 Index meanwhile increased by 0.1 per cent and the Russell 2000 by 0.4 per cent.

 

The ADP Nonfarm Employment Change showed working positions increased by 170,000, better than the 50,000 expected by the market, while the ISM Non-Manufacturing PMI rose from 56.8 per cent to 58.7 per cent.

 

The market situation supported the US Ten-Year Treasury yield, which increased by 4 basis points to 1.14 per cent. The crude oil price rose by around 2 per cent, reaching $58.70 (Bt1,760) per barrel.

 

In the EU, the Stoxx 50 Index closed positively at 0.5 per cent on the heels of Italy sorting out its political problems for now.

 

Published : February 04, 2021

By : THE NATION