Baht strengthens

The Thai currency is expected to move between 30.85 and 31.05 today, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
US markets on Monday opened under risk again as the Fed moved to start its Secondary Market Corporate Credit Facility and the Main Street Lending Programme, he said.
The S&P 500 increased by 0.8 per cent but the Euro Stoxx 50 decreased by 0.5 per cent. US Ten-Year Treasury bonds meanwhile rose by 4 basis points to 0.74 per cent. This showed investors would sink more money into those risk assets and reduce their safe haven assets, Jitipol said.
The dollar weakened by 0.4 per cent, compared to other currencies, while the yen strengthened the most. Japanese markets believed this present rate was not too strong to the point that the Bank of Japan would need to take a close look. The Australian dollar also recovered, by 0.8 per cent.
In Thailand, the baht in the short term would move in line with the market situation, Jitipol said. Investors have increased purchases in the emerging market, while their concern about a US-China conflict have faded. However, they are worried about a second Covid-19 wave, he said.
In the long term, Asian currencies will recover after a boost in exports and tourism worldwide, Jitipol added.