Baht stronger as dollar weakens, investors wait to sell gold
The baht opened at 33.31 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 33.35.
The Thai currency is likely to move between 33.20 and 33.40 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen slightly due to the dollar weakening and gold selling. Investors might be waiting to sell the gold when the price goes up nearly 1,800 dollars per ounce.
However, the baht might fluctuate as foreign investors slow down in investing in Thai especially stocks. They will wait to see a clear picture of economic recovery after the country opening.
Moreover, foreign investors have alternative choices in investing in Asia and Southeast Asia such as Japanese and Vietnamese stocks.
The key resistance level for the baht would be from 33.40 to 33.50 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 33.00 to 33.10, the level some importers are waiting for so they can buy dollars, he added.
