Baht gains more ground, as US dollar weakens
The baht opened at Bt31.65 to the US dollar on Friday (February 28), strengthening from Thursday’s close of Bt31.75. It is expected to move between Bt31.55 to Bt31.75, SCB Securities senior market strategist Jitipol Puksamatanan said on Friday.
“On Thursday night, the S&P 500 dropped sharply by 4.4 per cent, while Euro Stoxx 50 fell by 3.7 per cent, due to concerns over the Covid-19 situation,” he added.
Moreover, the WTI crude oil price decreased to $46.3 per barrel, or 4.9 per cent, from the previous price. Besides, 10-year bond yields of US, Germany and Japan dropped to 1.27 per cent, minus 0.56 per cent and minus 0.11 per cent, respectively.
The US dollar was the most weakened currency, compared to others, even more than the Chinese yuan.
“For the baht, there are two factors related to its movement worth monitoring: the direction of the dollar compared to Asian currencies, and the tendency of US financial policy,” Jitipol said.
“The US was expected to lower its interest rate three times this year, depending on the Covid-19 situation and capital market movement,” he explained.
Jitipol, in addition, predicted the baht to move at between Bt31.32 to Bt31.88 per dollar next week.