Baht unchanged, could strengthen from possible economic recovery
The baht opened at 30.03 to the US dollar on Thursday, unchanged from its closing rate on Wednesday.
The Thai currency is likely to move between 29.90 and 30.10 during the day, predicted Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.
On Wednesday night, the S&P 500 Index closed at 3,701.26 points, increasing by 0.2 per cent. The Stoxx 600 Index and the price of WTI crude oil and gold meanwhile rose in the range of 0.4 to 0.8 per cent.
Jitipol explained that the market rose partly after the Federal Open Market Committee (FOMC) meeting resolved to freeze the interest rate at 0 to 0.25 per cent.
Also, the FOMC committed to using the full range of Federal Reserve tools to support the US economy, therefore promoting its maximum employment and price stability goals.
Financial markets also took note of a US report on macroeconomics and foreign exchange policies of major trading partners. The document categorised Vietnam and Switzerland as “FX manipulators”, while Thailand was placed on the monitoring list. This came as the dollar weakened.
In Thailand, Jitipol estimated that the baht in the short term would move in a narrow range. The market tends to monitor currency operations conducted by the Bank of Thailand.
Economic recovery next year would be a main factor that would draw investors back to Thailand, he added. A recovery would possibly be a factor for the baht to strengthen.
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