Baht expected to move in line with Asian currencies

The Thai currency is expected to move between 31 to 31.50 this week and between 31.08 and 31.28 on Monday, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
The strategist said that the US economy is starting to recover, as seen in the employment numbers announced last week. The dollar index would move between 92 and 95 points, while currently it was 93.5.
Concerns about Thailand's political situation has led to sales of the baht. This week, the strategist added that the baht would move in line with other Asian currencies and the dollar.
He added that if the US stock market can reach a new high, Asian currencies, including the baht, would recover.
This week was the last period for registered companies around the world to announce their turnover in the second quarter. The turnovers announced previously were better than investors’ expectations, encouraging the financial market to be risk-on continually.
Moreover, the US Ten-Year Treasury yield increased from the lowest point of 0.50 per cent at the beginning of this year to 0.56 per cent, while Thailand's rose from 1.16 per cent to 1.22 per cent. The strategist pointed out that investors had a positive view of the economic cycle, and had started to dispose of some of the safe-haven assets.
This week, the strategist advised investors to monitor the US economic stimulus, and its economic discussions with China on August 15.