Baht strengthens

The Thai currency is expected to move between 31.45 and 31.65, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
Yesterday, US and EU policies helped increase the S&P 500 and Euro Stoxx 600 by 0.17 per cent and 0.50 per cent, respectively, he said. However, the US Ten-Year Treasury yield was down to 0.6 per cent, pointing out the fact that investors have not reduced their possession of safe-haven assets.
Meanwhile, the dollar’s status as an international reserve currency was discussed widely, especially after an EU economic stimulus agreement. This weakened the US currency by 0.8 per cent, compared to other main currencies, Jitipol said.
The euro strengthened to $1.15, the highest point since October 2018. The Australian dollar also strengthened, by 1.5 per cent.
The gold price increased by 1.3 per cent, while the Brent crude oil price remained at $43 per barrel.
Jitipol said foreign investors have stopped speculating on the baht, after the dollar weakened, which led to increased investor interest. The baht, he added, would move in line with other Asian currencies.
He advised investors to monitor business operations in the Asian region. If businesses run normally this quarter, the baht would weaken to lower than 31 to the US dollar, he said.