Baht expected to strengthen, buoyed by stock market

By THE NATION

 

 

The baht opened at 30.01 to the US dollar on Friday, unchanged from the closing rate on Thursday.

 

 

The Thai currency is likely to move between 29.90 and 30.10, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

 

On Thursday night, the financial markets were in a risk-on state, increasing the value of all assets.

 

The S&P 500 and Stoxx 600 indices rose by 0.4 and 0.1 per cent respectively, while the price of WTI crude oil and gold increased to $48.30 per barrel and $1,883 respectively.

 

At the same time, the dollar index weakened by 0.1 per cent, while the pound strengthened by 0.3 per cent, after the UK and the EU reached an agreement on Brexit.

 

The German and UK Ten-Year Treasury yields rose by 3 and 5 basis points respectively. However, the US Treasury yield decreased by 2 basis points.

 

In Thailand, the baht strengthened back in line with the stock market’s direction, despite no purchasing power from foreign investors.

 

Jitipol predicted the baht would continue to strengthen on Friday, advising the investors to monitor foreign exchange reserves, after the US placed Thailand on its monitoring list for currency manipulation.

 

Source: https://www.nationthailand.com/news/30400215?utm_source=category&utm_medium=internal_referral

 

-- © Copyright The Nation Thailand 2020-12-26

 

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4 hours ago, rooster59 said:

The baht opened at 30.01 to the US dollar on Friday, unchanged from the closing rate on Thursday.

The Thai currency is likely to move between 29.90 and 30.10, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

Senior director of the bleeding obvious back with his 'could go up, could go down' predictions again

Baht is bulletproof for now.

Expect measures to lower the strength of the baht in about 4.5 years when the entire current government by coincidence is on the run ????

Worthless currency on the worlds stage.

 

 

Tuesday 29th Dec 2020, 15:57 Thai time, Oanda says USD is 30.10 baht. Top end of prediction.

On 12/28/2020 at 5:58 AM, sammieuk1 said:

Expect measures to lower the strength of the baht in about 4.5 years when the entire current government by coincidence is on the run ????

The entire current government will retire abroad, very rich people, leaving behind the mess they created.  ????

29.94 Thb per 1 USD as of 6:34 pm today the 30th of December.  Looking in line with the end of last year.

On XE currency at 7 m tonight the USD/THB forex rate was 29.9483.

 

The GBP/THB rate was 40.7504.

2 minutes ago, billd766 said:

On XE currency at 7 m tonight the USD/THB forex rate was 29.9483.

 

The GBP/THB rate was 40.7504.

That is exactly where it was one year ago when you look at the historical charts.  Hard to believe it would be the same with the way the economies are worldwide.

Here another reason for the high Baht:

 

"Gold sales in Thailand are surging as households reach for a financial lifeline amid the pandemic, a tactic that risks complicating government efforts to tame an export-stifling rally in the nation’s currency."

 

https://www.bloomberg.com/news/articles/2020-12-28/thais-dipping-into-gold-savings-undermine-steps-to-rein-in-baht

1 hour ago, Oldie said:

Here another reason for the high Baht:

 

"Gold sales in Thailand are surging as households reach for a financial lifeline amid the pandemic, a tactic that risks complicating government efforts to tame an export-stifling rally in the nation’s currency."

 

https://www.bloomberg.com/news/articles/2020-12-28/thais-dipping-into-gold-savings-undermine-steps-to-rein-in-baht

Thailand has record household debt.

 

https://www.reuters.com/article/thailand-economy-loans/thai-household-debt-levels-to-rise-even-further-c-bank-gov-idUKL4N2HD1JH

 

Will be interesting to see what happens after households, including extended families, have sold off every asset they have, and have exhausted all means of paying for the necessities of living. 

 

Another military coup will not be the answer, because the military is already in power.  Whatever happens, it's not going to be pretty.