Saturday, October 31, 2020

Baht up, expected to see capital market support

Sep 29. 2020
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The baht opened at 31.63 to the US dollar on Tuesday, strengthening from yesterday’s close of 31.73.

The Thai currency is likely to move between 31.50 and 31.70, said Jitipol Puksamatanan, head of markets strategy at SCB Securities.

On Monday, the S&P index rose by 1.6 per cent due to intense trade in tech and bank stocks, while the Stoxx 600 recovered by 2.2 per cent as investors hoped the UK and the EU would finally reach an agreement on Brexit.

The relaxed market pressure could be seen from the VIX index, which decreased to 26 per cent, boosting the price of gold and oil by 0.9 and 1.1 per cent, respectively, he said.

Meanwhile, the dollar weakened by 0.2 per cent compared to other currencies. The US currency was pressured by the pound, which strengthened the highest, Jitipol said.

EU currencies recovered as well, after European Central Bank boss Christine Lagarde pointed out that ECB policies are expected to be used for stimulating the EU economy and will not focus on currency exchange.

In Thailand, Jitipol said, the baht would be supported by the capital market and other Asian currencies on Tuesday. However, its range of movement would be narrow.

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