The Thai currency is likely to move between 29.9 and 30.4 this week and between 30.05 and 30.25 on Monday, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.
Last week, the baht strengthened to Bt30 to the US dollar, raising concerns in the market about the currency’s direction in the future.
This week, Jitipol advised investors to monitor capital flows. He added that if the market believed that the US would issue fiscal policies to support the economy next year, the purchasing power would increase for the Thai currency and bond.
Another issue to monitor this week was a meeting of the Federal Open Market Committee (FOMC). The meeting result will be announced on Thursday. Observers expect the FOMC to freeze the US interest rate at 0 to 0.25 per cent.
In addition, China’s economic numbers would be revealed on Tuesday, while the Bank of England and Bank of Japan will hold their committee meetings on Thursday and Friday respectively.
Jitipol predicted that the US currency would weaken this week. The dollar index this week would tend to move between 90.2 to 91.2 points from the present 90.9 points.
14 Dec, 2020
