Baht sees weakest opening in four years
The baht opened at 33.84 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.77, the weakest in four years.
The Thai currency is likely to move between 33.75 and 33.95 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht might continue to weaken in the short term as it heads past the key resistance level of 33.50 to the US dollar.
The baht will fluctuate across this resistance level of 33.85 to 33.40 while the dollar strengthens, he said, expecting exporters to sell the US currency when the baht reached that level.
Poon advised investors to watch the Monetary Policy Committee meeting this afternoon. The weakening of the baht might slow down if the committee sticks to its policy interest rate with positive expectations of an economic recovery next year.
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Bahts weakening trend expected to continue in short term
Baht likely to weaken in the short term
However, Poon expects the baht will not strengthen soon until various risk factors faced by the market are solved and the economy recovers.
The key support level for the baht is 33.30 to the US dollar, he added.
