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Baht registers more gains against the dollar


The baht opened at 29.99 to the US dollar on Tuesday morning, strengthening from Monday’s close of 30.03.

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

Financial markets were in a risk-on state continually, amid investors’ hopes of a recovery in the market, especially in the US, he said.

This market situation underlined the issue of reflation trades again, pushing several stock markets up. The Russell 2000 rose by 2.5 per cent, while the S&P 500 gained 0.74 per cent.

In Europe, the Stoxx 50 increased by 0.27 per cent and the FTSE MIB of Italy by 1.5 per cent.

However, Poon said that some market players saw this growth of risk assets as unreliable, causing some purchasing power to move towards safe haven assets. The Ten-Year Treasury yield stayed around 1.17 and 1.18 per cent, and the dollar weakened slightly.

Hopes of an economic recovery and the weakened dollar also helped increase the price of commodities. Brent crude oil price reached over $60 per barrel, while the price of gold rose by around 1 per cent to $1.832 (Bt 54,898) per ounce.

Bitcoin shot up recently by 17 per cent to $45,571 (Bt1,365,603).

Published : February 09, 2021

By : THE NATION