Dollar sales by speculators may strengthen baht

The baht opened at 31.38 to the US dollar on Tuesday (September 8), strengthening from the previous close of Bt31.44.

The Thai currency would move between Bt31.30 and Bt31.50 on Tuesday and between 31.10 and 31.60 this week, said Jitipol Puksamatanan, head of markets strategy at SCB Securities.

Regarding movement of the baht, the strategist advised investors to monitor the US and Thai stock markets. He said the baht could be strengthened from the sales of dollars by foreign speculators.

This week, the market would monitor the European Central Bank (ECB) meeting to be held on Thursday. The strategist added that the ECB would likely freeze its financial policies while the EU economy is recovering.

In the US, government revenue and public expenditure will be announced on Friday.

In the financial markets, the dollar index rose from 92 points to 93 points last week, after the euro weakened and the US stock market was in “risk-off” state.

The strategist mentioned that relaxation of policies at the ECB meeting would strengthen the dollar. However, the stock market was a factor in weakening the US currency.

The strategist predicted that the dollar index would move between 92.4 to 93.4 points within this week, from the present 93 points.

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