Baht strengthens a tad on opening
The baht opened at 32.86 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 32.88.
The Thai currency is likely to move between 32.80 and 32.95 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht was testing the key resistance level of 33.00 to the dollar due to a host of risk factors faced by the country.
The Covid-19 situation might take a turn for the worse and usher in a new dreadful wave, causing investors to offload Thai assets.
He also pointed out that investors who have purchased short duration bonds are closing their risks. In the past two days, foreign investors have sold short duration bonds worth THB12 billion in total.
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Meanwhile, the dollar might strengthen if market worries over an economic recovery do not subside and shareholders are not ready to take risks.
Investor concern is starting to ease over an economic recovery as the Covid-19 situation is seen to improve.
Meanwhile, the US stock index was seeing a rebound after contracting last week, he added.
