Tuesday, September 29, 2020

Baht direction depends on global stock markets

Aug 04. 2020
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By THE NATION

The baht opened at 31.23 to the US dollar on Tuesday morning (August 4), unchanged from Monday’s close.

The Thai currency is expected to move between 31.10 and 31.30, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.

On Monday night, the market was in a risk-on state, supported by technology company stocks, while returns on bonds around the world were low. 

The S&P 500 Index rose by 0.7 per cent, while Stoxx Europe 600 closed positively by 2 per cent from the weakened euro. This market situation pressured the gold price to $1,973 per ounce.

In the short term, the market will wait for new US financial policies after the bid to offer $600 a week ended last week.

In the financial market, the dollar strengthened by 0.3 per cent, compared to other main currencies, after the ISM manufacturing and non-manufacturing purchase managers index showed recovery. Also, the market was worried about the Covid-19 situation in European countries.

This week, the strategist advised investors to monitor the recovery of stock markets worldwide. The risk-on market would support the baht and other Asian currencies, he explained.

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