Baht strengthens

The Thai currency is expected to move between 31.28 and 31.48, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
The strategist mentioned that US markets last night (Thailand time) opened in a risk state. The S&P 500 increased by 1.2 per cent, the highest level in fifteen weeks.
However, US Ten-Year Treasury bonds fell to 0.88 per cent, while German bonds decreased by 4.2 basis points to -0.32 per cent after investors felt the economy would not see rapid recovery.
The current financial market trend was related to the dollar and other currencies weakening. The yen strengthened due to investors’ concern that the US might sanction Chinese officials over the Muslim Uighur issue, Jitipol said.
In Thailand, the baht moved along with other Asian currencies despite worries over an economic recovery.
In the short term, the baht will not strengthen fast, Jitipol said.
He advised investors to monitor the US Federal Open Market Committee meeting on Wednesday and Thursday. If the Fed decides to go in for more relaxed monetary policies, additional capital would flow into emerging markets, Jitipol added.