The Thai currency is likely to move between 30 and 30.15 on Friday, Krungthai market strategist Poon Panichpibool said.
He forecast that the market is waiting for the US employment report, before deciding to free the baht from their hands.
He added that “reflation trades” status of the dollar would be reduced if the US economic information to be announced in the near future is better than investors expected. In that case, the dollar would strengthen and the baht would weaken slightly.
Poon added that exporters aimed to sell the dollar when it is around Bt30.05 to Bt30.15.
In case the market is not in a complete “risk off”, when Thai assets are sold and foreign fund flows out of Thailand, the baht will weaken to a maximum of 30.15 to the US dollar.
The market strategist said that overall the market was ready for risk, due to investors’ hopes of a US economic recovery. The Rusell 2000 index increased by almost 2 per cent.
The US Ten-Year Treasury yield stayed at 1.14 per cent, due to some people playing safe amid the rise of stock markets. The dollar strengthened compared to other main currencies, and the dollar index moved near 91.5 points.
In the EU, the Stoxx 50 index rose by 0.9 per cent, supported by the growth of the FTSE index in Italy. The euro weakened to $1.197, while the pound strengthened to $1.367.
Published : February 05, 2021
By : THE NATION