Chinas real-estate crisis pulls down the baht
The baht opened at 33.20 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.12.
The Thai currency is likely to move between 33.10 and 33.25 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the default crisis of Chinese real estate companies might pressure the Asian currency market and cause the baht to weaken. Moreover, investors selling Asian assets will cause currencies in Asia to weaken.
Meanwhile, foreign investors slow down in investing in Thai stocks because they are waiting for the basic economy factor in Thai to be better. Investors are waiting to see the economy after the country opening in November.
Poon also predicted that the gold trading also cause the baht to be volatile. Investors will sell the gold which will cause the baht to strengthen if the price goes up nearly 1,800 dollars per ounce.
The key resistance level for the baht would be at 33.40 to the dollar, which is the level at which exporters might sell the US currency.
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The baht’s key support level would be from 32.90 to 33.00, the level some importers are waiting for so they can buy dollars, he added.
