Friday, July 03, 2020

Baht barely up

Jun 02. 2020
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By THE NATION

The baht rose to 31.65 to the US dollar this morning (June 2), strengthening from Monday’s close of 31.68.

The Thai currency is expected to move between 31.55 and 31.75, said Jitipol Puksamatanan, the head of Markets Strategy at SCB Securities.

On Monday night, the S&P 500 rose by 0.38 per cent, and US Ten-Year Treasury bonds fell to 0.65 per cent. The euro strengthened to $1.11 (Bt35.13).

Meanwhile, the US’s ISM Manufacturing PMI increased to 43.1 points, from 41.5 points last month, reflecting that the country’s economy is continuing to slow.

The gold price increased by 1.6 per cent, to $1,741 (Bt55,109) per ounce.

Jitipol said the political situation in the US was a supporting factor of gold in the short term. Besides, the slow economic recovery could be another supporting factor in the long term.

He also said the baht has recovered faster than he expected, due to “missed imports”, after energy product prices fell and the dollar weakened.

He advised investors to monitor the dollar situation, adding that the currency would weaken when the market is in a risk-off state and if the euro becomes a safe haven currency again.

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