FRIDAY, March 29, 2024
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Baht might climb in short term as oil price tumbles

Baht might climb in short term as oil price tumbles

The baht on Tuesday (March 10) opened at 31.43 to the US dollar, and like Monday’s close would move at between Bt31.30 to Bt31.50/USD, SCB Securities senior market strategist Jitipol Puksamatanan said.

“On Monday night, the financial market fluctuated from three factors: the oil price that dropped more than 25 per cent, investors’ concerns about the new coronavirus, and the falling US stocks,” he said.
Within one day, the S&P500 index dropped by 7.6 per cent, while the 10-year Treasury contracted to 0.55 per cent. Besides, the yen strengthened to 102.40 to the US dollar.
The WTI crude oil price was lower by 26 per cent, at $30.20 per barrel, but the price of gold did not increase. “The price was stable at $1678 per ounce,” he added.
“We need to monitor the Asian financial markets today, in the context of the oil price. In the short term, the risk assets at present would be 17 per cent cheaper,” the strategist said.
Meanwhile, the baht, like other Asian currencies, would weaken in the morning but strengthen later as the oil price risk affects it less than other currencies in the emerging markets.
“In the short term, the baht would swing in a narrow range, but it would be more interesting in the long term, like other Asian currencies and those risk assets,” he said.

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