Friday, March 05, 2021

Baht likely to move in step with dollar

Jan 22. 2021
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By THE NATION

The baht opened at 29.93 to the US dollar on Friday, unchanged from Thursday’s close.

The Thai currency is likely to move between 29.85 and 30 on Friday, Krungthai market strategist Poon Panichpibool said.

Poon mentioned that the financial markets had started to face speculation, after it continually grew from the improved US political situation. So, the US stock indices dropped slightly, such as the Russell 2000, which decreased by 0.64 per cent.

Meanwhile, tech stocks increased, especially big ones like Apple and Intel, pushing the Nasdaq up by 0.55 per cent. Besides, the Ten-Year Treasury yield grew by 2 basis points last night.

Poon also said that the European Central Bank’s relaxed policies did not help the market to be ready for risk, due to investors’ concerns about Covid-19. The Stoxx50 decreased by 0.16 per cent.

The market strategist said that the US economic recovery tended to slow down from the virus crisis, as the labour market had not recovered. The initial jobless claims this week were 900,000 positions.

In Thailand, December export data to be announce this month would show contraction by 2 per cent year on year, due to container shortage around the world.

The baht would still move in line with the dollar and foreign funds flows, while Thailand’s surplus balance was not high.

Besides, the currency would still move in a predictable range as most market players were awaiting the results of a key Bank of Thailand meeting next month, Poon added.

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