Baht strengthens as foreign investors buy bonds

The baht is expected to move between 32.30 and 32.50 per US dollar, said Jitipol Puksamatanan, SCB Securities senior market strategist.
On Wednesday night, the S&P 500 recovered by 2.3 per cent while Euro Stoxx 600 rose by 1.8 per cent, after the WTI crude oil price moved up to $14.30 per barrel. The price of gold also increased, to $1,715 per ounce.
However, the low price of oil failed to weaken the dollar, since US technology stocks recovered, increasing the demand for dollars over other currencies.
In addition, the deteriorating relationship between the US and Iran encouraged investors to keep dollars in hand.
Meanwhile the euro hit a two-week low of $1.08, as investors expect difficult negotiations at Thursday’s EU teleconference on measures to alleviate economic suffering amid the Covid-19 crisis.
Closer to home, the baht strengthened as foreign investors returned to invest in bonds and also delayed selling their Thai stocks.
The market is now looking out for a pending announcement on the number of new registered corporations in Thailand, which is forecast to be among the lowest in Asia.