The baht opened at 31.36 to the US dollar this morning (August 20), weakening from yesterday’s close of 31.22.
The Thai currency is expected to move between 31.30 and 31.50, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.
Yesterday, the S&P 500 fell by 0.4 per cent after the US Federal Open Market Committee was still to clarify its financial policy and trends that would support the US economy.
The Stoxx Europe 600 increased by 0.6 per cent from a weakened euro and after the French government disagreed with a second shutdown.
In the financial market, most investors decided to sell their assets for speculation after the market entered a “risk off” state, Jitipol said.
This situation strengthened the dollar by 0.6 per cent.
He said the financial market has moved only slightly, since the overall economic direction has not changed.
WTI crude oil stayed at $42 (Bt1,310) per barrel, while the gold price was at $1,929 per ounce. The US Ten-Year Treasury yield increased by 1 basis point to 0.68 per cent.
The baht meanwhile weakened after reports of new domestic Covid-19 patients in Thailand. This, the strategist predicted, could weaken the baht by at most 2 per cent to 31.40 or 31.60 per US dollar.
However, this factor would affect the market only in the short term, he added.