Thursday, July 09, 2020

Baht strengthens, with room for further appreciation

Jun 05. 2020
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The baht opened at 31.54 to the US dollar on Friday morning (June 5), strengthening from the previous close of 31.60.

The Thai currency is expected to move between 31.45 and 31.65, said Jitipol Puksamatanan, the head of Markets Strategy, at SCB Securities.

The strategist said that the baht was supported by the dollar, which weakened by 0.2 per cent, while the yen has not strengthened.

However, he added, the dollar was expected to move in a narrower range, since the market is waiting to see the direction of the US employment rate. If the unemployment number is not above 20 per cent, the dollar would be supported to strengthen.

On Thursday night, the European Central Bank expanded its pandemic emergency purchase programme by 600 billion euros, increasing the present programme to 1.35 trillion euros, and will end in June 2021.

The euro has strengthened for eight consecutive days. The dollar is now $1.13 to the euro. Euro Stoxx 50 closed by the sell on fact and fell by 0.24 per cent, while the S&P 500 in the US fell by 0.34 per cent.

The US Ten-Year Treasury yield contracted by eight basis points to 0.82 per cent, due to the market view that the economy is recovering and more monetary policies are not necessary.

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