Thai baht no longer blinks oath of oath of new leader
On January 18, 2021 at 5:37 p.m.
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Krungsri expects baht to trade in the range 29.95-30.25, indicating the market’s interest in the inauguration ceremony of the US leader.
Global Markets Group Bank of Ayudhya Public Company Limited has a view on the direction of the baht this week that It is likely to move within the range of 29.95-30.25 per dollar compared to the previous week. The baht closed appreciating at 30.04 against the dollar after trading in the 29.95-30.19 range, with the dollar strengthening against most major currencies. While investors continue to profit in other currencies. Although US bond yields have stabilized, foreign investors buy 670 million baht net on the Thai stock market, but sell 4,500 million baht in bonds.
Global Markets said the market will focus on the US leadership’s inauguration ceremony on Jan. 20, as many parties are taking precautions to prevent the turbulence. Focus on communicating with the market to maintain a very easing policy, and pledged that the Fed will give clear signals if it will adjust its measures to support the economy when employment is steadily recovering in the future. Past lessons indicate the risk of withdrawing the stimulus program too early. This year, Krungsri believes the Fed’s communication approach will be the top priority for any movement in the foreign exchange market. In this period We think the dollar will trample in the frame. The market will follow the stance of the US leader in the early days of his inauguration, which is expected to focus on accelerating vaccination and mitigating the effects of the epidemic. This condition will continue to facilitate investment in riskier assets and depress the dollar after a short correction.
For domestic factors The Bank of Thailand (BOT) said it was possible to downgrade its economic forecast for the year that it had forecast to expand by 3.2% following a new outbreak in the country. The severity of the impact depends on the intensity and success of the disease control measures. However, the BOT said the economy was less affected than in the first round. The export tends to improve in line with the economies of trading partners. Krungsri expects that if the situation does not deteriorate significantly The government will hold the policy interest at 0.50% and use the direct liquidity distribution method.
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