Thailand
Baht gains but future movement hinges on stock market correction
The Thai currency would likely move between Bt32.60 and Bt32.80/USD, Jitipol Puksamatanan, head of Markets Strategy at SCB Securities, said.
On Wednesday night, the S&P500 increased by 3.4 per cent from numerous good news, such as WTI crude oil increasing by 10.8 per cent.
In addition, Bernie Sanders ended his presidential campaign, clearing Joe Biden’s path to the Democrat Party nomination for a showdown with Donald Trump in November.
Furthermore, the US government plans to run more financial stimulus measures, together with the financial sector. The Fed signalled that it would use the “yield curve control” measure.
In Europe, countries have still not agreed to apply the co-financial policy in the region, causing the Euro Stoxx 50 to fall by 0.22 per cent.
In the financial market, the dollar swung positively by 0.1 per cent, compared to the other main currencies. Also, the Russian rouble, the Australian dollar, and the Brazilian real have increased by 2.5 to 3.0 per cent in the past five days.
The baht, overall, has strengthened, and been traded in a narrow range. This showed that its liquidity problem has been resolved, and possibly passed the lowest point of this year.
In the next phase, investors must monitor the stock market correction as a factor to weaken the baht.
Source: https://www.nationthailand.com/business/30385667?utm_source=category&utm_medium=internal_referral