Baht opens stronger, expected to rally despite pressure from strengthening greenback
The baht opened at 32.85 to the US dollar on Friday, strengthening from Thursday’s closing of 32.93.
The Thai currency is likely to move between 32.75 and 32.90 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He added that the baht is likely to swing sideways despite pressure from a strengthening dollar. The baht is supported by gold sell-offs and foreign investors’ interest in short-term bonds.
The strategist expects foreign investors to use the baht to invest in short-term bonds once the currency reaches the resistance level of 33 baht to the dollar.
Meanwhile, other factors may help strengthen or stabilise the dollar such as a surge in Covid-19 cases during the winter in Europe and China.
Poon explained that exporters may sell the dollar when it hits 33 baht to the dollar, while importers will buy the dollar when it hits 32.60 baht.
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He also said he expects the baht to swing between 32.60 and 33 after it reaches the 32.60 level.
