Wed, October 20, 2021


Baht shows slight weakness as all eyes on govt's steps to prevent second Covid-19 wave

The baht opened at 31.57 to the US dollar on Thursday morning (July 16), weakening from Wednesday’s close of 31.51.

The Thai currency is expected to move between Bt31.48 and 31.68, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
On Wednesday night, the financial markets were upbeat. The S&P 500 increased by 0.9 per cent, to the same level as at the beginning of this year. Stoxx Euro 600 rose by 1.7 per cent, up by 11 per cent from the level at the beginning of this year.
Meanwhile, other assets moved with caution. The US Ten-Year Treasury yield was stable at 0.63 per cent, while the WTI crude oil price was $41 per barrel. Gold price reached over $1,810 per ounce.
The gross domestic product of China in the second quarter grew by 2.3 per cent, compared to the same period in 2019. This meant that China’s economy contracted by 2.4 per cent in the first half of 2020.
Bank Indonesia will hold its meeting on Thursday and is expected to cut the interest rate by 4 per cent, while the European Central Bank will freeze the deposit interest at minus 0.50 per cent and purchase assets under the policy called "Pandemic Emergency Purchase Programme".
In Thailand, the strategist said that investors must monitor how the government deals with the Covid-19 situation, as well as the upcoming Cabinet reshuffle.

Published : July 16, 2020