Baht strengthens a tad

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The Thai currency would move between 31.33 and 31.53 today, said Jitipol Puksamatanan, head of markets strategy at SCB Securities.

Yesterday, the S&P 500 decreased by 2.78 per cent, while the Stoxx Europe 600 was down by 1.15 per cent. Tech stocks saw intensified trading as investors looked to gain high value.

At the same time, the WTI crude oil price decreased by 7.3 per cent, due to market concern over oil use in the future.

Jitipol said the stock market’s “risk off” state pressured the US Ten-Year treasury yield by 5.6 basis points to 0.66 per cent.

Also, the dollar strengthened by 0.3 per cent, compared to other currencies. The Australia and New Zealand dollars decreased by 0.6 and 0.9 per cent, respectively.

In Thailand, the strategist said, the baht moved in a narrow range despite being traded by foreign investors. In the short term, he predicted, the change in stock markets would weaken the baht, in line with other Asian currencies.

However, he added that the falling oil price would ease pressure on imports and help improve the country’s balance of payments.