Baht weakens in line with Asian stock markets

The baht on Thursday (April 16) opened at Bt32.74 to the US dollar, weakening from Wednesday’s close of Bt32.65.

The baht would move between Bt32.65 to Bt32.85 per US dollar, said Jitipol Puksamatanan, head of Markets Strategy, at SCB Securities.

He also predicted that the baht’s liquidity would be low in the short-term, since trade between exporters and importers had not returned.

At the same time, foreign investors have continually sold their assets in Thailand, although bond yields have decreased.

This time, we saw the direction of Asian capital markets as a main factor im the baht’s movement, he said.

On Wednesday night, the S&P 500 and Euro Stoxx 600 fell by 2.2 per cent and 3.2 per cent, respectively, due to investors’ concerns on the impact of Covid-19 containment measures on the global economy.

However, the bond yields of safe countries are still reliable. The US and German yields decreased to 0.64 per cent and minus 0.47 per cent, respectively. Meanwhile, Italian and Brazilian bond yields increased by around 10 to 20 basis points.

The dollar index grew by 0.8 per cent, the highest increase in 30 days. Besides, the Australian dollar, the Russian ruble and the South African rand contracted over 2.0 per cent.

Investors must monitor global corporations’ performance on Thursday. Moreover, the US Fed, on the same day, will have a briefing on the economy and stabilisation of financial markets.