Baht rises against dollar, expected to stay in narrow range
The baht opened at 30.05 to the US dollar on Monday morning, strengthening from Friday’s close of 30.09.
The Thai currency is likely to move between 29.90 and 30.15 on Monday and 29.95 to 30.10 this week, Krungthai market strategist Poon Panichpibool said.
He predicted that the baht would move in the range and weaken only slightly, while the dollar strengthened.
The main issues the market will monitor this week are the US stimulus package and financial results of listed companies in the last quarter of 2020.
The US economy is gradually recovering and initial jobless claims are steadily falling. The University of Michigan Consumer Sentiment in February was positive at 80.7 points, from consumers’ hopes of a stimulus package and vaccine distribution.
In the UK, the Covid-19 outbreak is expected to shrink the economy by 11 per cent in 2020 and 2 per cent in the last quarter.
However, institutional investors surveyed by Sentix expect a recovery in the next six months.