Baht up amid weakened dollar, lower gold price

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The baht opened at 30.38 to the US dollar on Wednesday, weakening from 30.34 at close on Tuesday.

The Thai currency is likely to move between 30.25 and 30.45, said Jitipol Puksamatanan, senior director of the chief investment office at SCB Securities.

On Tuesday night, the financial market was in a risk-on state. The S&P 500 and Stoxx 600 rose by 1.6 and 0.9 per cent, respectively. Meanwhile the price of WTI crude oil increased by 4.2 per cent, while the gold price decreased by 1.7 per cent to $1,806 (Bt54,866) per ounce.

The dollar also weakened by 0.3 per cent, compared to other currencies. The Ten-Year Treasury yield rose to 0.87 per cent and the Thirty-Year Treasury yield to 1.6 per cent.

Jitipol said investors were more confident in a US economic recovery, with Joe Biden set to take over the presidency.

In Thailand, the baht was traded under the influences of a weakened dollar and gold.


Jitipol added that it was important for investors to monitor development and progress of a Covid-19 vaccine. He explained that this could support Asian currencies to the end of the year.