THURSDAY, March 28, 2024
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Reopening of tourism in Asia. US election result expected to pressure baht

Reopening of tourism in Asia. US election result expected to pressure baht

The baht opened at 31.20 to the US dollar on Friday, weakening from 31.18 at close on Thursday.

The Thai currency is likely to move between 31.10 and 31.30 on Friday, said Jitipol Puksamatanan, multi-assets strategist at SCB Securities.
On Thursday night, all markets saw a jump. The S&P 500 and Stoxx 600 indices increased by 0.8 per cent, while the WTI crude oil price rose to $41.20 per barrel. Gold price also increased to $1,893 per ounce, or by 3 per cent.
This movement was triggered by investors’ expectation that the US would launch economic stimulus measures before the election this November.
In the US, the dollar weakened by 0.2 per cent compared to other main currencies.
The Ten-Year Treasury decreased by two basis points to 0.77 per cent. The initial jobless claims announced this week was at 840,000 positions.
In Thailand, the baht was traded in a wide range, but with low liquidity.
In the next phase, Jitipol advised investors to monitor the reopening of tourism in Asian countries, as well as the US presidential election result.
These two issues were estimated to pressure the baht to move between 30.2 to 32.5 per US dollar in the fourth quarter.
The SCB expected the baht to stay at 30.8 per US dollar at the end of this year, if the Democratic Party wins the election. Moreover, international travelling will recover in 2021.

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