Limited room for baht to strengthen

The Thai currency is expected to move between 31.75 and 31.95, Krungthai Bank's money market strategist, Jitipol Puksamatanan, said.
The strategist said that initial jobless claims in the US were 2.1 million recently, meaning that 40 million people were unemployed due to the Covid-19 crisis. However, those needing state benefits decreased this week to 21.1 million from 24.9 million last week.
US gross domestic product contracted by 5 per cent compared to 2019’s first quarter. Durable goods orders in late April decreased by 17.2 per cent.
The economic data led to the S&P 500 sliding 0.2 per cent, while Euro Stoxx 600 rose by 1.6 per cent. Meanwhile, Brent crude oil increased to $35.30 per barrel, and gold price rose to $1,719 per ounce from $1,700.
In the financial market, the dollar weakened in comparison with the euro after the European stock market strengthened. The dollar index was pressured to fall by 0.5 per cent, and the yen stayed at $107.7 dollar per yen.
In Thailand, room for strengthening of the baht was limited after the stock market showed resistance at 1,350 points. The baht also would be pressured if international trade recovered next month.