Wednesday, August 04, 2021


Baht strengthens slightly

The baht opened at 31.49 to the US dollar this morning (June 8), strengthening from its previous close of 31.51.



The Thai currency is expected to move between 31.35 and 31.55 today and 31.25 and 31.75 this week, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
He said the baht and investment in the Asian region have been supported by the weakening of the dollar. He believed the capital that flowed back to Asia was an initial response. Investors’ views would be a supporting factor for safe haven selling and would boost purchase of risk assets in Thailand and other emerging markets.
Jitipol advised investors to monitor the Federal Open Market Committee (FOMC) meeting this week. The recovered labour market could pressure the Fed to delay additional economic stimulus policies and help it wait to see how the economy performs down the line.
“This could cause a change in the US economy and western investors could possibly hold the dollar again,” he said.
Financial markets around the world would be supported by the recovering US economic situation, while the Fed could continue using relaxed monetary policies, he added.
The FOMC meeting will be held this Wednesday and make a decision on Thursday. The committee is expected to decide to stick with an interest rate of 0 to 0.25 per cent.

Published : June 08, 2020