Saturday, August 08, 2020

Baht strengthens in opening trade

Jul 07. 2020
Facebook Twitter


The baht opened at 31.04 to the US dollar this morning (July 7), strengthening from Friday’s close of 31.12.

The Thai currency is expected to move between 30.90 and 31.10 today, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.

On Monday night (Thailand time), financial markets around the world were in positive territory. The S&P 500 and Euro Stoxx 50 increased by 1.6 per cent and 1.7 per cent, respectively.

The US Ten-Year Treasury yield was unchanged at 0.68 per cent, while the German yield was at 0.44 per cent. Japan’s treasury yield was at 0.03 per cent, increasing by two basis points.

In the US, the ISM non-manufacturing PMI reached 57.1 points, rising from 45.4 points in June.

Jitipol explained that this rise was caused by a reopening of numerous businesses this month, which has led to new orders in almost all industries.

Meanwhile, the dollar continued to weaken compared to other main currencies. The Norwegian krone and Swedish krona recovered the most.

The strategist said investors are still concerned about the Covid-19 crisis on the US continent. Some of them have reduced investment in the dollar due to their concern over controversial US foreign policies, especially vis-a-vis China.

The baht as well as other Asian currencies have weakened.

Jitipol said Chinese and Asian stock markets are seeing a recovery, so investors would show interest in investing in Asia this week.

Facebook Twitter
More in News
Editor’s Picks
Top News