Global Markets Group Bank of Ayudhya (BAY) revealed its view on the baht’s direction this week. It tends to move within the range of 33.50-34.00 baht/dollar compared to the previous week. The baht closed down at 33.60 baht/dollar after trading in a range of 32.81-33.64 baht/dollar. The baht depreciated sharply on concerns that the US Federal Reserve (Fed) might speed up its policy tightening as well as concerns about the late virus. New varieties at the end of the week The dollar turned weak against the euro and yen last week. Even at the beginning of the week the euro hit a new 16-week low. It has been pressured by concerns about the promulgation of lockdown measures in Europe.
The yen traded at its lowest level in nearly five years on the direction of the Fed’s policy following President Joe. US Biden nominate Mr. Powell to serve as Fed chairman for a second term Spurred forecasts on ongoing monetary stimulus withdrawals The minutes of the Fed’s meeting pointed to a supportive stance on accelerating the downsizing of asset purchase measures. The Fed expressed concern over inflation, which could stay higher for longer than expected.
However, the yen, euro and Swiss franc returned to gain support at the end of the week. While the market panicked about the Omicron coronavirus Foreign investors sold net in stocks and Thai bonds worth 3,045 million baht and 14,197 million baht, respectively.
Global Markets Group sees that, in the short term, information about the Omicron species And the efficacy of existing vaccines will be a key driver of the market sentiment, as the currency, which had previously been predicted by central banks to raise interest rates rapidly, faces selling amid uncertainty over global economic prospects.
Investors will also be following the Fed chair’s statement and November US job figures. including reviewing market forecasts about the Fed’s accelerating downsizing of asset purchase programs. in this condition Krungsri expects the market to continue to be highly volatile until it becomes more clear about the severity of the new strain.
for domestic factors The Governor of the Bank of Thailand (BOT) stated that the Thai economy is not at risk from rising inflation in major countries. Because Thailand does not rely on funding from the world money market very much. Meanwhile, the Bank of Thailand emphasizes that fiscal policy will play a key role in salvaging the economy because it has quick and accurate results.
In the meantime, Krungsri estimates that the shift to the new strain of coronavirus will depress the baht through capital outflows and uncertainty about the recovery of the tourism sector.
By InfoQuest News Agency (29 Nov 64)
Tags: BAY, Thai Baht, Bank of Ayudhya, Thai Baht