Baht steady, but capital flows after businesses reopen hold key to trend

The baht is expected to move between 32.30 and 32.50 to the dollar on Wednesday, SCB Securities senior market strategist Jitipol Puksamatanan said.
On Wednesday night, the US Federal Open Market Committee meeting decided to maintain the policy interest at 0.00 to 0.25 per cent. The US US Federal Reserve also said it could use monetary policies to support liquidity amid the Covid-19 crisis.
The meeting estimated that the unemployment rate would stay at 6.0 per cent in 2021. 
At the same time, the S&P 500 increased by 2.7 per cent, while Euro Stoxx 600 closed positively at 1.8 per cent. The dollar index weakened compared to the other main currencies.
The baht’s fluctuation, in the short term, would obviously decrease, although the capital has not flown in from foreign investors..
The strategist added that the market would focus on reopening of businesses and control of Covid-19. If businesses in Asia or Thailand reopened quickly, capital would flow to the region fast, he explained.