The baht appreciates, leaving a significant support line. After the Fed insists on buying bonds. Until the economy will return to normal
Foreign exchange department Bangkok Bank reports that the movement of the foreign exchange market between 14-18 December 2020, the Thai baht market opens Monday morning (14/12) at the level of 30.06 / 08 baht / US dollar. Stable from the previous Wednesday’s close (9/12) at 30.08 / 09 baht / US dollar. During the past long holidays
The US dollar still moved within the framework. By fluctuating slightly Investors have opted to sell the safe-haven currency and acquire more risky assets due to the progress of the COVID-19 vaccine. With reports of officials from the US Food and Drug Administration (FDA) that the vaccine against the virus of COVID-19. Of Moderna Company is efficient and safe And eligible to be approved as an emergency
The report signaled that the FDA would make formal approval of the COVID-19 vaccine. Moderna in the earliest days
Investors are also selling dollars as there is hope that the US Congress will soon be able to release a stimulus package. Republicans and Democrats have agreed to split the $ 9.08 billion stimulus package into two bills to increase the chances of it being approved by Congress. The first issue will have a credit line of 7.48 billion dollars. To cure the unemployed and small businesses affected by COVID-19. While the other will have a $ 1.60 billion grant to aid states.
In addition, on Wednesday night (16/12) the US dollar fell one more level. It is a new weakening level in the second half of the second half, after the Federal Reserve (Fed) resolved to maintain interest rates at 0.00-0.25% and said the Fed will continue to use all tools to support its recovery. Economy to have the full potential of employment And inflation rose 2% above target level.
The Fed pledged to continue to buy bonds in line with quantitative easing (QE) totaling $ 1.2 billion a month.
As for the key economic figures that were announced this week. It also shows that the economy is still in a sluggish state. By the US Department of Commerce stated that November’s retail sales fell 1.1%, the second month’s decline. Marquit stated that Primary Manufacturing Purchasing Managers Index (PMI) Month US December fell to 56.5, the lowest in two months, while the preliminary service PMI index last month. Dec. dropped to 55.3, the lowest level in three months.
For the movement of the baht during this week At the beginning of the week, the baht swung in a narrow range between 30.00-30.10 baht / US dollar. There is still no new factor to the movement of the baht. Although investors are keeping an eye on the COVID-19 epidemic. That the outbreak in northern Thailand began to spread to different regions of the country
However, the number of infections still indicates There has not been a widespread epidemic. Or need to be monitored until the country is closed again However, on Wednesday night (16/12) after the announcement of the Fed’s approach to injection of money. On Thursday (17/12), the baht strengthened at the key support level at 30.00 baht / US dollar, which was the strongest level since the end of 2019.
Mrs. Chantawan Sucharitakul, Assistant Governor Communication lines and corporate relations The Bank of Thailand (BOT) revealed that the BOT does not have a policy to intervene in the currency to create an international trade advantage. And that Thailand is listed in the Monitoring List of the US Treasury. It is insignificant to businesses that trade with the US. Which Thai and US business sectors Continue to conduct business as usual
And such assessment does not affect the implementation of the policy of Bank of Thailand to maintain economic and financial stability in the country Including maintaining exchange rate stability This is in line with the functions of the central bank and the necessity of the situation. Over the past week, the baht moved within the range of 29.76-30.10 baht / US dollar. Before the market close on Friday (18/12) at 29.77 / 79 baht / US dollar.
For the movement of the euro The euro opened Monday morning (14/12) at the level of 1.2119 / 20 USD / EUR. Slightly weaker from Wednesday’s close (9/12) at 1.2126 / 27 USD / EUR.
During this week The euro is likely to appreciate following the depreciation of the US dollar. The euro is also supported by the UK’s recent Brexit negotiations. Britain’s separation from the EU (Brexit) revealed that the completion of a trade agreement between Britain. And the European Union There is still a possibility
He stated that negotiations between the two parties are still ongoing at this time. To coordinate different opinions on fisheries issues And regulations that will apply to various companies fairly
Investors are also hopeful that the COVID-19 epidemic will be In Europe, this will come to an end after European Commission officials said the EU may approve the vaccine. Pfizer’s and biotech COVIDs were reached as early as Dec. 23, after the United States and Britain began vaccinating the people.
For the economic figures during the past week Country purchasing managers’ index figures in both the manufacturing and service sectors were higher than market expectations. During the week, the euro moved within the framework. 1.2112-1.2273 US Dollar / Euro And closed on Friday (18/12) at 1.2256 / 58 USD / EUR.
For the movement of the yen The yen opens Monday morning (14/12) at the level of 104.03 / 04 yen / US dollar. Was flat from Wednesday’s close (9/12) at 104.06 / 08 yen / US dollar. During this week, the yen strengthened following the depreciation of the US dollar. The appreciation after the Fed’s announcement on Wednesday night (16/12) continued to Thursday (17/12) at 102.90 yen / US dollar. Which was the strongest since March on Friday (18/12).
The Bank of Japan (BOJ) adopted a particularly relaxed monetary policy resolution at its meeting. This is in line with market forecasts, with the BOJ insisting on measures to mitigate the disruption of funding. This includes financing commercial banks at a 0% interest rate so that they can lend to affected companies.
It has also expanded programs to support funding for the private sector for another 6 months until the end of September next year due to COVID-19. That came back to spread again Causing the economy to face uncertainty During the week, the yen moved within the frame between 102.90-104.15 Yen / US Dollar And closed on Friday (18/12) at 103.44 / 46 yen / US dollar.
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