Sunday, March 29, 2020

Baht strengthens against dollar

Feb 25. 2020
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The baht opened at Bt31.65 per US dollar, strengthening from Bt31.69 at close on Monday, and would move between Bt31.60 to Bt31.70, SCB Securities senior market strategist Jitipol Puksamatanan said today (February 25).

Last night, the S&P500 Index decreased by 3.35 per cent, while the Euro Stoxx 50 and FTSE 100 dropped by 4.01 per cent and 3.34 per cent, respectively.

“It was the worst market situation since last August, and possibly caused by concern over new Covid-19 patients outside China,” he said. “Also, Asian financial markets this morning have moved into negative territory.”

Jitipol also said that only bonds were safe in the current financial market situation.

The Japanese yen has become a safe haven again, while the Australian and New Zealand dollars have continued weakening after a decrease in commodity prices.

“According to recent trade data, Thailand is said to export gold at time when prices of the metal have increased. This will cause the baht not to weaken much at a time when gold demand is high,” he said. 

“The market on Tuesday would be covered in fear. Capital will flow to shares, or flow back into debt securities. However, the baht on Tuesday will be stable,” he predicted earlier in the day.

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