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Baht strengthens as dollar weakens

The baht opened at 29.92 to the US dollar on Wednesday morning, strengthening from Tuesday’s close of 29.95.


The Thai currency is likely to move between 29.85 and 30 on Wednesday, Krungthai market strategist Poon Panichpibool said.


Poon said the baht would strengthen when the dollar weakens. Importers tend to purchase the dollar when the baht goes past 30 to the US currency.


Investors are concerned that an increased inflation rate – caused by US stimulus policies and the Federal Reserve’s relaxed polices – will affect financial markets, especially stock valuations.


This concern has led to a slight decrease in the market. The S&P 500 and Stoxx 50 indexes dropped 0.11 per cent and 0.12 per cent, respectively.


Meanwhile, a fluctuation in risk assets reduced the value of the US Ten-Year Treasury yield by 2 basis points to 1.16 per cent.


At the same time, the dollar continued to weaken, compared to other main currencies. The dollar index decreased to 90.4 points while the euro strengthened to $1.21.

Published : February 10, 2021