Friday, June 18, 2021

in-focus

Baht shows slight weakness against dollar as US economy shows encouraging recovery


The baht opened at 29.90 to the US dollar on Monday, weakening from Friday’s close of 29.88.

1,138

View

The Thai currency is likely to move between 29.85 and 29.95 on Monday and 29.80 and 30.10 this week, Krungthai market strategist Poon Panichpibool said.

He said the baht was waiting for new factors to move it. However, the currency this time has moved in line with the dollar, and would tend to fluctuate.

Poon added that the dollar would tend to strengthen in case the US economy recovered more than other regions.

He added that another factor to affect the baht was the fund flow of foreign investors. This week, there will be an offering of Thai Ten-Year Treasury, which would be of interest to some investors and strengthen the baht slightly.

The US economy is showing gradual recovery. National retail sales this month will increase 1 per cent over January due to the US government’s $600 cash handout package.

Meanwhile, industrial production in the US was believed to grow continually by 0.4 per cent from the previous month. Besides, the Capacity Utilization Rate will reach 74.8 per cent, supporting a demand for goods in the market.

In Japan, the economy in the fourth quarter of 2020, to be announced soon, was seen as growing 9.5 per cent over the third quarter.

Published : February 15, 2021

By : THE NATION