Saturday, October 31, 2020

Baht appreciates amid speculation by investors

Sep 30. 2020
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By THE NATION

The baht opened at 31.61 to the US dollar on Wednesday, 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 Tuesday night, the S&P 500 and Stoxx 600 fell by 0.5 per cent, as investors were concerned about a stalemate in the US congress on new policies to stimulate the economy. 

At the same time, WTI crude oil price dropped by 3.5 per cent, since the market expected that the oil would be consumed at a lower rate in case the economy has not been stimulated. Besides, gold price increased to $1,898 per ounce, after the dollar weakened.

The US Conference Board’s consumer confidence index rose to 101.8 points, exceeding the expectations of analysts of 90 points. The strategist explained that this was a reason for the dollar weakening.

In Thailand, the baht moved differently from other Asian currencies, due to speculation by investors and their trade of Thai stocks and bonds overseas. 

However, Jitipol mentioned that the baht situation on Wednesday would be different from previous days, since the market would focus on US politics.

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