Baht strengthens as Thailand prepares to reopen #SootinClaimon.Com

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40007404


The baht opened at 33.70 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 33.88.

The Thai currency is likely to move between 33.60 and 33.80 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said that investors should speculate on the upcoming bond auction. Foreign investors will invest in Thai stocks if the demand was more than expected, which caused the baht to strengthen.

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Moreover, the baht momentum was supported by investors buying baht as Thailand will open in November. The baht will strengthen heavily soon after the Prime Minister announced the country will open for fully vaccinated foreign tourists without a mandatory quarantine.

However, the dollar still strengthens because investors are in a risk-off state. Investors also speculated that the US Federal Reserve will decrease the quantitive easing (QE) in November which cause the dollar to not weaken soon. The market will be in a risk-on state if investors ease their worries about risk factors and the Fed is hesitant to decrease the QE in November.

Poon added the baht will not strengthen clearly soon in the short term as the dollar strengthened and the basic factor was not fully recovered.

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The baht’s key support level would be from 33.50 to 33.60, the level some importers are waiting for so they can buy dollars, he added.

The market was in the risk-on state after the crude oil price was the highest in seven years which caused inflation and might cause stagflation if the economy is slow down.

Meanwhile, the market was worry about Chinese business regulation after China investigated the relationship with companies executives and government officials. 

The market is also keeping an eye on Evergrande’s crisis after the company did not pay interest to bond investors, which Evergrande will have 30 days to pay them.

Published : October 12, 2021

By : THE NATION

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