Baht rallies as investors wait for Monetary Policy Committees decision on interest rate
The baht opened at 32.76 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 32.78.
The Thai currency is likely to move between 32.65 and 32.80 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is likely to strengthen due to the weakening of the dollar, gold sell-offs and foreign investors interest in Thai stocks.
He added that foreign investors are buying short-term bonds for 11 billion baht total this week.
Moreover, the baht might be supported by Monetary Policy Committee today which might expect the economic recovery will be better.
Investors expect that the committee will be able to increase the interest rate in 2023 or 2022 if other central banks increase the interest rate faster than expected.
