Thursday, July 09, 2020

Short-term gains likely for baht on back of trade surplus

May 27. 2020
Facebook Twitter


The baht opened at 31.88 to the US dollar this morning (May 27), unchanged from Tuesday’s close.

The Thai currency is expected to move between 31.80 and 32.00, SCB Securities senior market strategist Jitipol Puksamatanan said.

On Tuesday night, the S&P 500 and Euro Stoxx 50 rose by 1.23 per cent and 0.94 per cent, respectively. The Ten-Year Treasury yields of the US and Germany were at 0.68 per cent and minus 0.43 per cent.

Meanwhile, the financial markets are focused on the recovery direction of the economy and US monetary policies which would be relaxed, instead of on the brewing conflict between the US and China.

The economic situation had pressured the dollar to weaken by 0.9 per cent, compared to other major currencies. Moreover, the gold price decreased, while the stock market rose.

This situation would cause the baht to swing in a narrow range, the strategist added. In the short-term, the baht would strengthen from a trade surplus due to Thai imports being lower than exports.

In the third quarter, the strategist advised investors to monitor the market views on international politics, although the Covid-19 outbreak remains the main focus.

Facebook Twitter
More in News
Editor’s Picks
Top News