Thai Baht Lift Dependent Upon Global Stock Market

The Thai currency is expected to move at between 31.75 and 32.95, SCB Securities senior market strategist Jitipol Puksamatanan said.

On Wednesday night, the S&P 500 and Euro Stoxx 50 rose by 1.67 per cent and 1.37 per cent, respectively, while the Ten-Year Treasury yields of US and Germany increased to 0.67 per cent and minus 0.47 per cent respectively.

In the financial markets, the dollar weakened by 0.5 per cent, compared to the other main currencies. The strategist believed that the weakening was caused by the Federal Open Market Committee meeting that expressed concerns about a second wave of Covid-19 in US.

In Thailand, the Monetary Policy Committee reduced the key policy rate by 0.25 percentage point to 0.50 per cent. Thai bond yields decreased by 2 to 4 basis points, while stocks and bonds were sold as usual.

The baht would be supported by a recovery of the global stock markets this month or the next, the analyst said.

SOURCE: The Nation