Wide sell-offs bring baht down to lowest in 3 weeks

“We expect the baht to continue depreciating until the end of April, as there will be no positive sentiments to strengthen it,” the trader said. “Generally, the baht strengthens when the dollar weakens depending on the direction of the US stock market.”
However, the currency trader added that in the short term, the baht will weaken up to Bt33.70 to the US dollar, accounting for a continuous depreciation of 2 per cent as countries launch measures to cope with the Covid-19 pandemic and resulting in a global slowdown.
“In the next phase, we have to beware of companies defaulting their debt payments, forcing investors worldwide to sell their assets and pressure currencies in emerging markets to weaken further,” the trader added.

Meanwhile, Kobsidthi Silpachai, chief of the capital markets research at Kasikornbank, said dividend payments to foreign investors may also be attributing to the weakening baht.