Baht holds firm against dollar amid worries of Covid-19's impact on job market
The baht on Wednesday (March 11) opened at Bt31.44 to the US dollar, same as Tuesday’s close, and was likely to move at between Bt31.30 to Bt31.50 per US dollar, SCB Securities senior market strategist Jitipol Puksamatanan said.
“The baht on Wednesday would move in a wider range after the US dollar strengthens again,” he predicted. “However, those investors would not speculate on the baht at this time, since it was relevant to the risk assets.”
On Tuesday night, the US government lowered the income tax rate to stimulate the economy due to the impact of Covid-19. Also, the S&P 500 rose by 4.9 per cent, while the 10-Year Treasury reached 0.80 per cent, up 26.2 basis points, in line with WTI crude oil that rose by 11.9 per cent, touching $34.83 per barrel.
Besides, the yen weakened to 105.63 per US dollar, while gold price decreased by 1.9 per cent, and moved to $1,649 per ounce.
“The most important point for investors monitoring this time is the labour market, which could pressure the financial market in the future, since numerous businesses have stopped hiring workers, especially in US,” the strategist said.
Meanwhile, President Xi Jinping of China visited Wuhan city recently after the number of Covid-19 patients there continually decreased.
“As Asian countries start returning to operating businesses more and more, it will be a positive factor for most currencies in the region,” he added.