Production recovery expected to strengthen baht in short term

The Thai currency is expected to move between 31.30 and 31.50, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
On Tuesday night, the S&P 500 rose by 0.4 per cent, due to technology stocks and the weakened dollar. In contrast, Stoxx Euro 600 fell by 0.3 per cent, over UK issues related to Brexit.
The main trend in the financial market became the weakened dollar, while the market was in a risk-on state.
The US Ten-Year Treasury increased by two basis points to 0.69 per cent, and gold price stayed at $1,928 per cent. This showed that investors did not need the safe haven asset as in previous period, the strategist concluded.
Regarding the baht, the strategist advised investors to monitor recovery in Asian capital markets. Also, in the short term, he explained that a recovery of the production sector, as well as an increase in the price of oil, would strengthen the baht and other Asian currencies.