Baht strengthens a tad in opening trade
The baht opened at 31.69 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 31.74.
The Thai currency is likely to move between 31.65 and 31.75 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon explained that the baht had weakened due to concern among foreign investors about the Covid-19 situation in Thailand, prompting them to sell their risky assets in the country.
Meanwhile the dollar weakened as the market was more ready to accept risk, he said, predicting that the US currency would move in a narrow range and could continue to weaken if Asian and European economies start to recover or strengthen.
He therefore suggested that investors monitor the Covid-19 situation on the two continents.
However, the baht would not weaken sharply as exporters aimed to offload their dollar holdings at the appropriate time, he added.
