Baht weakens just before BOT monetary policy meet

[webfact]

Baht weakens just before BOT monetary policy meet

By THE NATION

 

 

The baht opened at 30.19 to the US dollar on Wednesday, weakening from 30.16 at close on Tuesday.

 

The Thai currency is likely to move between 30.10 and 30.30, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

 

On Tuesday night, the US stock market decreased. The S&P 500 contracted by 0.5 per cent, while the Stoxx 600 was down by 0.2 per cent due to investor concern about the Covid-19 situation.

 

At the same time, the US financial market went into a “risk-off” state again after Federal Reserve Chairman Jerome Powell said Covid-19, for which a vaccine was nearing development, would not affect the economy in the long term. However, he added that employment would take a long time to recover to its normal level.

 

The US Ten-Year Treasury yield meanwhile decreased by 3.4 basis points to 0.87 per cent, and the dollar weakened by 0.1 per cent, compared to other main currencies.

 

In Thailand, the baht moved in a narrow range before the Bank of Thailand’s monetary policy committee was due to meet on Wednesday.

 

Observers believe the central bank will implement more relaxed monetary measures to stimulate the economy, but these policies may tend to weaken the baht, Jitipol said.

 

Source: https://www.nationthailand.com/news/30398142

 

-- © Copyright The Nation Thailand 2020-11-18

 

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[keith101]

Really      3 satang isn't even worth mentioning and makes very little difference the reason being that as usual it will more than likely go 4 satang the other way .

[2530Ubon]

16 minutes ago, webfact said:

Observers believe the central bank will implement more relaxed monetary measures to stimulate the economy, but these policies may tend to weaken the baht, Jitipol said.

Those observers need their heads examined. When has the BOT ever intervened? They talk a lot about pulling levers and enacting policies, but at the end of the day, nothing gets done. Sort it out.

[OJAS]

4 hours ago, 2530Ubon said:

Those observers need their heads examined. When has the BOT ever intervened? They talk a lot about pulling levers and enacting policies, but at the end of the day, nothing gets done. Sort it out.

I can only surmise that the major stumbling block to getting anything done is the BOT Governor's inflated ego, which means that he sees his key role as being to brag constantly to his counterparts in this part of the world and beyond about how much more successful he is when compared to them in keeping the value of the currency for which he is responsible artifically high!????

[hotchilli]

6 hours ago, keith101 said:

Really      3 satang isn't even worth mentioning and makes very little difference the reason being that as usual it will more than likely go 4 satang the other way .

Could have waited till the start of next month... I would have rushed out to buy a sherbet lemon.

[Eric Loh]

On 11/18/2020 at 10:38 AM, 2530Ubon said:

Those observers need their heads examined. When has the BOT ever intervened? They talk a lot about pulling levers and enacting policies, but at the end of the day, nothing gets done. Sort it out.

The last time BOT intervened robustly, it resulted in financial meltdown that spread to other countries and WB has to bail them out. Wiser heads will allow the fundamentals to determine exchange rates. Thailand don't have that much of reserves to influence the value of the Baht.