New round of COVID makes economy riskier – post today financial news – stocks

New round of COVID puts economy at risk

Date 21 Dec 2020 at 5:55 PM

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Krungsri expects Thai baht to trade within the framework of 29.80-30.15, looking at the new coronavirus outbreak increasing risks to the economy.

Global Markets Group Bank of Ayudhya Public Company Limited has a view on the direction of the baht this week that They are likely to move within the range of 29.80-30.15 per dollar, compared with the close at 29.79 per dollar last week. After the baht hit its strongest level in more than seven years amid the depreciation of the dollar in the world market and Thailand was hit by the US. Keep an eye on exchange rates Meanwhile, the baht appreciates the psychological key level, prompting market players to accelerate the sale of dollars, foreign investors net sales in Thai stocks and bonds worth 8.6 billion baht and 3.6 billion baht, respectively.

Global Markets Krungsri Group believes investors will keep an eye on the COVID-19 epidemic. And the closure of European cities British infection mutations Including uncertainty about Brexit, in this situation, investors’ exposure to risk may be limited. Despite the positive news after the United States Able to reach a $ 9 billion fiscal stimulus agreement. While the Federal Reserve (Fed) has fixed interest rates at its meeting last week. With stating that he will inject money into the market in the future Until the economy recovered strongly from the COVID-19 crisis. The Fed will continue to buy at least $ 80 billion in bonds a month. And at least $ 40 billion in agency mortgage-backed securities per month. However, trading liquidity in the global financial markets is expected to diminish as the Christmas holidays enter the year. Volatility in the currency if there is important news to affect

For domestic factors It is expected that the Monetary Policy Committee (MPC) will resolve to maintain the policy rate at 0.50% in its meeting on December 23, but must admit that the new epidemic in Thailand will hinder spending. season High levels of uncertainty add to the downside risk for the economy. Meanwhile, the baht at the beginning of this week depreciates after Thailand has seen record-breaking daily infections. In the event that Thailand was placed in the Monitoring List of countries with currency manipulation in the US Treasury to create a commercial advantage. The authorities said it would not affect the Bank of Thailand’s policy action to maintain financial stability.

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