Wednesday, May 27, 2020

BOT expected to check baht's volatlity as currency weakens

Mar 19. 2020
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By THE NATION

The baht on Thursday (March 19) opened at Bt32.56 per US dollar, weakening from Wednesday’s close of Bt32.47.

The Thai currency is expected to move at between Bt32.45 to Bt32.75 per US dollar, SCB Securities senior market strategist Jitipol Puksamatanan said.

“The baht faces a sharp problem of liquidity. Also, its daily direction is clearly pointed by the direction of Asian stock markets,” he said. “However, we believe that the Bank of Thailand would step in to take care of the baht’s fluctuation in the future, since the current currency movement was improper for businesses.”

On Wednesday night, the S&P 500 and Euro Stoxx 50 contracted by 5.18 and 5.72 per cent, respectively. At the same time, the dollar has strengthened continually by 3 per cent, while its index rose by 98 points, due to investors’ concerns on the slowdown in the economy, the virus situation, and the US government’s policies.

“One currency needing close monitoring at this time is the UK pound, which has fallen to its lowest level since 1985,” the strategist said.

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