Baht fluctuates in line with gold price as investors offload some stocks
The baht opened at 33.37 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.30.
The Thai currency is likely to move between 33.30 and 33.50 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht will fluctuate in the short term. The dollar was weakened by the gold price which caused the baht to strengthen. The baht is also strengthening because of foreign investments. The market was in a risk-on state which could pressure the dollar to weaken.
However, he said that foreign investors will start to sell Thai stocks relating to country opening as they sold Thai stocks for 1.6 billion baht yesterday.
Poon added that foreign investors will invest back in Thai stocks if the Thai economy recovers, which will cause the baht to strengthen.
The gold price also affected the dollar. Gold investors are waiting to buy gold in the range of 1,760 to 1,770 dollars per ounce and waiting to sell nearby at 1,800 per ounce.
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The key resistance level for the baht would be from 33.50 to 33.60 to the dollar, which is the level at which exporters might sell the US currency.
The baht’s key support level would be from 33.10 to 33.20, the level some importers are waiting for so they can buy dollars, he added.
