THURSDAY, March 28, 2024
nationthailand

Baht opens weaker, reflecting economic and political concerns

Baht opens weaker, reflecting economic and political concerns

The baht opened weaker at Bt31.82 per dollar on Wednesday (February 26), down from Tuesday’s closing rate of Bt31.70/USD, and is expected to move at between Bt31.70 to Bt31.85, SCB Securities senior market strategist Jitipol Puksamatanan said.

“The dollar started to weaken after US stocks fell as well as stocks of other countries,” he said. “However, those related commodities currencies have weakened in line with the drop in the price of oil as well, meaning it was not a clear signal of the US dollar weakening.”
Meanwhile, the baht has started to reflect Thailand’s political situation and the slowing Asian economy. The latter has caused the baht to fluctuate with neighbouring currencies.
“The baht and other Asian currencies cannot recover if investors remain concerned about the main risks in the capital market, such as the Covid-19 and economic situation,” he added.
Last night, the S&P 500 fell by 3.03 per cent while Euro Stoxx 50 and the FTSE 100 dropped by 2.07 per cent and 1.94 per cent, respectively. Besides, the 10-year US Treasury was stable near the lowest point level of 1.36 per cent.
Gold price rose by 0.22 per cent to US$1,638 per ounce, while crude oil price continued to decline. “In the past two days, the price of oil has fallen by 6.07 per cent, reflecting concerns about the economy and slowdown in spending.

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