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Capital flows to Thailand After the dollar came under pressure
Date January 05, 2021 at 07:37
The enormous easing of monetary policy in the United States Pressure on the dollar and attraction of capital to emerging markets
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 within the range of 29.80-30.10 per dollar, compared to the close of 30.01 per last week’s dollar. Foreign investors bought a net purchase of 372 million baht and 202 million baht of Thai stocks and bonds, respectively. In 2020, the baht appreciated 0.07%, while the Chinese yuan brought the regional currency’s appreciation to 7.00%. The yield curve for Thai bonds has fallen 20-80 bps since the end of 2019.
The Global Markets division believes that the market will focus on a number of key US economic data, such as the service sector figures. And employment In addition, investors will be watching the Georgia elections, which will indicate which party will have the majority in the United States Senate. It will affect the additional fiscal stimulus in the next phase. As many countries begin to inject or purchase vaccines, the COVID-19 epidemic continues to expand, yet taking steps to curb the infection will inevitably hamper the global economic recovery for the bigger picture this year. We hold the view that massive easing of US monetary policy will depress the dollar and attract capital flows to emerging markets.
Due to domestic factors The Bank of Thailand (BOT) reported that private consumption resumed expansion in November as a result of a program to stimulate public spending and special holidays. Meanwhile, private investment grew in line with the confidence of the business sector, however the recovery was not comprehensive while foreign tourists were still very small. Authorities will continue to monitor the new epidemic in Thailand and abroad.
Furthermore, Krungsri sees that although disease control measures in this round may not be as intense as in March 2020 and that the advance of the vaccine is the hope of all sectors But investors will remain cautious as the market The labor market becomes more fragile and the wounds of the service sector deepen since the initial closure of the city.
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