FRIDAY, March 29, 2024
nationthailand

Baht gains but stock market seen as determining its direction

Baht gains but stock market seen as determining its direction

The baht opened at 30.89 to the US dollar on Friday morning (June 26), strengthening from Thursday’s close of 30.93.

The Thai currency is expected to move between 30.80 and 31.00 on Friday, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
He said that the baht’s exchange rate has encountered resistance from the fluctuating financial market, as well as the weakened dollar. He advised investors to monitor the stock market’s direction.
The strategist said that the financial market has been supported by the relaxation of the Volcker rule.
Under the US federal rule, banks are barred from conducting certain investment activities with their own accounts and limits their dealings with hedge funds and private equity funds.
An estimated $40 billion liquidity would return to the financial system. This also caused the S&P 500 to rise by 1.1 per cent on Thursday night.
However, the Covid-19 problem was still an issue of concern. Texas and Florida have recently suspended the reopening of businesses. At the same time, the initial jobless claims this week was 1.48 million, while total claims of the government’s benefits reduced to 19.5 million.
In the financial market, the dollar strengthened by 0.2 per cent, compared to other main currencies. The price of oil, gold and industrial ores have continued rising.

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