Baht declines as dollar strengthens to year high
The baht opened at 32.87 to the US dollar on Thursday, weakening from Wednesday’s closing rate of 32.75.
The Thai currency is likely to move between 32.70 and 32.90 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might fluctuate but could be strengthened by gold sell-offs and foreign investors interest in short-term bonds and Thai stocks that might drop after the Monetary Policy Committee expected the economic recovery to be better.
Moreover, Poon said that the dollar hit the highest level of the year as the market was concerned with inflation. He expected the dollar to drop in the short term except if the market find more risk factors such as the Covid-19 situation worsening in the winter.
Poon added that exporters might sell the dollar when it reaches 32.90 to 33.00 baht to the dollar.
Meanwhile, importers are waiting to buy the dollar when it reaches 32.50 to 32.60 baht to the dollar. Poon expected the baht to swing between 32.50 to 33.00.
