Short-term gain for baht as foreign investors sell dollars

The Thai currency is likely to move between 31.21 and 31.41 on Tuesday, said Jitipol Puksamatanan, head of markets strategy at SCB Securities.
Jitipol said that the financial markets were buoyant again on Monday night -- the S&P 500 index and Stoxx 600 increasing by 1.8 and 0.8 per cent, respectively -- after US President Donald Trump's recovery from Covid-19.
However, investors believe that Trump will lose to Joe Biden in the election.
At the same time, the US Ten-Year Treasury increased by six basis points to 0.76 per cent, while the Thirty-Year Treasury rose to 1.56 per cent, revealing that the financial markets were already in a risk-on state.
The baht in the short term was supported by the sales of the weakened dollars of foreign investors. Moreover, the investors did not sell Thai bonds, since Thai inflation has reduced sharply.