Mon, October 25, 2021

in-focus

Baht steady but foreign funds flow could determine direction


The baht opened at 29.89 to the US dollar on Tuesday, unchanged from Monday’s close.

The Thai currency is likely to move between 29.80 and 30, Krungthai market strategist Poon Panichpibool said.

The baht has still moved in a range, despite strengthening slightly from the dollar’s movement.

Poon advised investors to monitor foreign funds flow as a factor to affect the baht. Investors should focus on the auction of Thai Two-Year Treasury yield on Wednesday, which could support the baht’s value, he said.

Demand for Chinese assets would increase if the yuan strengthens and the Chinese capital market reopens after the Chinese New Year holidays, he said.

The market strategist said that overall the financial markets were in a risk-on state continually, amid investors’ hopes of an economic recovery.

The recovery signal can be seen from the distribution rate of Covid-19 vaccine in the US and UK, as well as the 13 per cent growth of the Japanese economy in the last quarter of 2020. The Nikkei 225 index rose by 1.9 per cent, touching a new high since 1990, Poon said.

In Europe, the FTSE index of the UK rose by over 2.5 per cent, after the increase in distribution rate of vaccine. The Stoxx 50 grew over 1 per cent.

In the commodities market, the crude oil price has still increased due to positive signals of economic recovery and the arctic blast in the US. Moreover, gold price decreased by 0.3 per cent to $1,818 (Bt54,300).

Published : February 16, 2021

By : THE NATION