Baht's direction could be influenced by yuan, HK dollar movement

The Thai currency is expected to move between Bt31.43 and 31.63 on Wednesday, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
On Tuesday night, the capital market returned to risk-on state, from support in the energy and industry sectors. The S&P 500 went up by 1.3 per cent.
Meanwhile, the US Ten-Year Treasury yield stayed at 0.62 per cent, and the WTI crude oil price moved at $40 per barrel. Also, the price of gold rose by 0.4 per cent to over $1,800 per ounce.
The dollar weakened by 0.3 per cent, supporting the euro to reach its highest point in four months.
The issue to be monitored was the UK banning Huawei’s 5G gadgets, as a result of which the pound could fluctuate in the future.
The baht in the short term started to be stable, after its sharp weakening due to concerns about another wave of coronavirus outbreak in Thailand. However, some investors have decided to sell the currency to avoid losses from it weakening.
The strategist suggested that investors monitor the situation of China’s yuan and the Hong Kong dollar, after Donald Trump decided to end Hong Kong’s special status with the US to punish China.
If the two currencies could be stable this time, investors would be confident in Asian currencies, including the baht, he said.