Wednesday, November 25, 2020

Baht expected to weaken today

Oct 29. 2020
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The baht opened at 31.26 to the US dollar on Thursday, weakening from 31.18 at close on Wednesday.

The Thai currency is likely to move between 31.20 and 31.40 on Thursday, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

The financial market was in the “risk off” state again, after some European countries decided to lock down temporarily to prevent Covid-19 from spreading further. Meanwhile, the Stoxx 600 index decreased by 2.9 per cent, the S&P 500 index dropped by 3.5 per cent and the VIX index reached 40 per cent for the first time since June 11, he noted.

This market situation pressured US and German Ten-Year Treasury yields to lows of 0.77 per cent and -0.62 per cent, respectively.

The dollar however strengthened by 0.8 per cent, causing the gold price to drop by 1.7 per cent. The price of WTI crude oil also decreased, by 5.6 per cent in one day, due to investors’ concern about oil consumption amid the present Covid-19 situation, Jitipol said.

The Australian dollar weakened the highest compared to other currencies, while the Japanese yen was considered safer than the US dollar, he said.

In Thailand, the baht would weaken today, in line with the global financial market, he predicted.

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