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Keep an eye out for Bank of Thailand to fight strong baht.
Date 09 Dec 2020 at 8:33 AM
Krungsri expects the baht to trade between 30.00 and 30.30, watch the dollar stabilize, and keep an eye on the BOT’s actions.
Global Markets Group Bank of Ayudhya Public Company Limited has an opinion on the direction of the baht this week that it is likely to move in the range of 30.00-30.30 per dollar, compared to the close of 30.15 per dollar last week. Foreign investors have net sales on the Thai equity and bond markets of 600 million baht and 3.3 billion baht, respectively. That investors will trade cautiously this week. In which the national financial market is open for only 2 days
Global Markets Krungsri Group sees its main focus at the European Central Bank (ECB) meeting on December 10, where the resolution is expected to boost the € 500 billion QE by further stimulating the economy. It was in line with signals from the ECB at its October meeting. Furthermore, investors will follow the conclusion of Brexit, with markets expecting the UK and the EU to reach a deal at the last minute. Reflecting that the risk to the downside of the pound remains open in case there is no agreement. Other factors this week include a sharp increase in the COVID-19 situation in the United States. And advances in new economic stimulus measures After the US stock market hit another record last week. Investors are open to risks amid hopes for vaccines and fiscal measures, yet the latest data indicates a recovery in the US job market. Starting to run out of power In this condition We expect the dollar to remain low against most currencies.
By domestic factors The Bank of Thailand (BOT) will clarify additional measures to adjust the foreign exchange market ecosystem and the care of the baht on December 9 to explain the adjustment of the market environment. The official said he was closely monitoring the baht amid short-term capital inflows. The consumer price index in November fell 0.41% compared to the same period last year. This was the negative low in nine months, while the core CPI, excluding fresh food and energy, rose 0.18%. We expect trading to remain cautious given a tighter stance on custody of the baht. From the Bank of Thailand Although since the beginning of December, the baht has strengthened in line with emerging Asian currencies, the South Korean won, the Chinese yuan and the baht have gained around 2.0%, 0.7% and 0.3 % respectively.
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