Baht strenghtens, seen moving in line with the US dollar
The baht on Thursday (March 26) opened at Bt32.74 to the US dollar, strengthening from Friday’s close of Bt32.87, and would move between Bt32.70 to Bt33.95 per US dollar, SCB Securities senior market strategist Jitipol Puksamatanan said.
On Wednesday night, the S&P 500 and Euro Stoxx 50 rose by 1.15 per cent and 3.1 per cent, respectively, due to investors’ hopes of a US financial policy tackling the economic slowdown this year.
However, the VIX index has still been at 63 per cent, and bond yields worldwide have fluctuated. Recently, the US 10-Year Treasury was at 0.81 per cent, while German bond yields rose slightly to minus 0.26 per cent.
On Thursday, investors must monitor the Bank of England’s meeting, as well as new financial measures which would be issued.
The euro was the most strengthened currency and the yen was stable. “Emerging markets currencies and the baht would recover in line with the recovery of crude oil price,” the strategist said.
In addition, the baht had low liquidity and moved mainly in line with the dollar’s direction.