Baht opens weak, expected to fluctuate as US Fed meeting comes up
The baht opened at 33.32 to the US dollar on Monday, weakening from the previous closing of 33.18.
The Thai currency is likely to move between 33.25 and 33.40 during the day and between 33.00 and 33.50 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon reckons that the baht will fluctuate, especially since the US Federal Reserve is set to meet this week. Important economic data in the US such as the Purchasing Managers’ Index and Nonfarm Payrolls Report will also affect the greenback.
Moreover, gold may also cause volatility, swinging sideways between $1,760 and $1,810 per ounce. This volatility will possibly make investors hold back.
The sell-off of Thai assets by foreign investors may also pressure the baht to fluctuate. Investors may reduce their holdings of stocks and bonds in the short term if they are afraid of a tight monetary policy from central banks.
The key resistance level for the baht will be between 33.40 and 33.50 to the dollar, which is the level at which exporters may sell the US currency.
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The baht’s key support level will be from 33 to 33.10 to the dollar, at which level some importers may buy dollars, Poon said.
