Baht unchanged as investors buy up stocks linked to Thailand’s reopening
The baht opened at 33.18 to the US dollar on Friday, unchanged from Thursday’s closing rate.
The Thai currency is likely to move between 33.10 and 33.30 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is strengthening because foreign investors are investing in Thai stocks especially stocks relating to country opening.
Meanwhile, investors sold gold after the price increased caused the baht to strengthen in the short term. However, Poon said that the baht will not strengthen much soon as the Covid-19 situation is still worrying and the basic factor was not fully recovered.
The key resistance level for the baht would be from 33.35 to 33.50, which is the level at which exporters might sell the US currency. The baht’s key support level would be at 33.
Poon said that the baht is highly volatile and could suddenly change direction. He recommended that investors use various hedging tools such as options or Foreign Currency Deposit (FCD) accounts with a currency forward.
