Baht down, may fluctuate as dollar strengthens, gold price drops
The baht opened at 33.28 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.24.
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 fluctuate and weaken because the dollar strengthened and investors bought the gold after the price decreased.
He expected the baht will fluctuate before and after the US Federal Reserve’s meeting because investors expected that the Fed might worry about inflation and increase the interest. (The market expected the Fed to increase the interest two times next year.)
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.
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.
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Moreover, foreign investors set a stop loss level at 33.00 to the dollar. If the baht strengthen past the level, the baht might strengthen suddenly.
