Baht appreciates as markets move into risk-on mode
The baht opened at 31.29 to the US dollar on Monday morning (August 3), strengthening from Friday’s close of 31.24.
The Thai currency is expected to move between 31.20 and 31.40 on Monday and between 31.00 and 31.50 this week, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
The strategist said that the baht tended to have more liquidity in the market, after automobile importers and exporters returned to the market.
Moreover, the capital leaving Thailand was lower, due to the decreased yield of the Ten-Year US Treasury.
He said that the overall market was in a risk-on state, and advised investors to monitor the stock market.
This week, the US will announce its ISM Manufacturing and Non-Manufacturing purcase managers index, which was expected to improve from the previous level.
Moreover, Thailand's Monetary Policy Committee was expected to maintain the interest rate at 0.50 per cent at its meeting on Wednesday. Besides, the interest rate of the UK would be frozen at 0.10 per cent.
The US Non-farm Payrolls announced on Friday it would show a recovery of 2 million positions.
The dollar index this week would move between 92 to 94.5 points, from its present point of 93.3 points.
