Thai baht depreciated from the previous week.
Date 01 March 2021 time 21:03
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Krungsri expects Thai baht to trade in the frame of 30.15-30.50, keeping an eye on the US bond market.
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 30.15-30.50 baht / dollar compared to the previous week. The baht closed down at 30.12 baht / dollar after trading in the 29.96-30.14 baht / dollar range last week. The dollar strengthened against all major currencies. After US 10-year bond yields soared to pre-epidemic levels. While the President of the United States Federal Reserve (Fed) speaks to the congressional committee. Not to mention the risk of rising bond yields. But commented that the economy has not fully recovered and it still takes time.
The Fed will continue to focus on remedying the labor market, and it will also give early warning signals before future policy adjustments. The Fed chair said interest rates will remain pegged to low and the Fed will continue to buy at least $ 1.2 billion in debt annually. Stocks and gold to watch the situation in the US bond market, foreign investors net sales in Thai stock and bond markets worth 10,300 million baht and 1,400 million baht, respectively. The baht depreciated by 0.5%, clinging to most regional currencies.
Ms. Rung Sanguanruang, Director of Global Markets Business Promotion Bank of Ayudhya Public Company Limited sees that the world market will pay attention to several key economic data of the US, such as the service sector index. And non-agricultural employment After the Fed chair stressed that the economy is still far from overriding the Fed’s goals for employment and inflation, Krungsri sees The opinion of the Fed is not enough to mitigate turbulence in the market, especially in a rather different stance from the Fed. The European Central Bank (ECB) and the Reserve Bank of Australia, which highlighted concerns about higher bond yields. As investors may need more concrete measures from the Fed to stabilize bond markets. If US bond yields are volatile. We expect the dollar to continue to boost in the short term.
For domestic factors The Commerce Ministry will release February inflation figures, while the BOT has reported that private consumption and the January labor market were affected by the new epidemic. Export excluding gold expanded in line with trading partners’ economies. The export product category with good growth was motor vehicles and parts. Electrical appliances Processed agricultural products Including electronics
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