Baht strengthens as all eyes on key central bank meeting

The Thai currency is expected to move between 30.85 and 31.05 this week, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
Western financial markets, he said, moved between positive and negative territory last night (Thai time). The S&P 500 increased by 0.6 per cent due to investors’ hopes of a US recovery. Also, US Ten-Year Treasury bonds rose to 0.71 per cent, while the Euro Stoxx 600 was down by 0.8 per cent.
As for commodities, there is still the view that the US economy will recover step by step, increasing the oil price to its highest rate since late March.
Meanwhile, the dollar weakened by 0.5 per cent, compared to other main currencies.
Jitipol said the baht in the short term would move in a narrow range due to stock market instability. The baht this week will be affected by the outcome of the Thai central bank’s monetary policy committee meeting, and market forces estimate that the direction of the baht will then become clear, he added.