Baht performance hinges on Covid situation: market strategist
The baht opened at 32.95 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 32.93.
The Thai currency is likely to move between 32.90 and 33.05 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht might test the key resistance level of 33.00 to the dollar due to risk factors faced by the country.
The Covid-19 situation might take a turn for the worse and usher in a new dreaded wave, causing investors to offload Thai assets, he pointed out, adding that investors who have purchased short duration bonds might close their risks.
Meanwhile, the market is still in a risk-on state and supported by the dollar’s momentum, Poon said.
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The baht will not strengthen in the short term until the market sees worries ease and is ready to take risks, during which the dollar may weaken, he added.
