Baht not expected to strengthen in short term amid risk factors
The baht opened at 33.94 to the US dollar on Thursday, weakening from Wednesday’s closing rate of 33.86.
The Thai currency is likely to move between 33.85 and 34.05 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht would not strengthen in the short term as there are risk factors, especially the dollar’s momentum as it strengthens due to the demand for safe-haven assets.
He felt the key resistance level would be 34.00 to the dollar if there is no risk factor facing the country that would pressure the baht. The Thai currency could reach its next resistance level of 34.25 if it weakens, he maintained.
Poon said the strengthening of the dollar might slow down as the market takes more risks in step with an economic recovery, which would help the baht to strengthen again.
However, even then the Thai currency will not strengthen much until investors believe the economy is clearly improving.
The key support level for the baht would be from 33.40 to 33.60 per dollar, Poon added.
