Baht strengthens amid market worries over inflation
The baht opened at 32.63 to the US dollar on Thursday, strengthening from Wednesday’s closing of 32.73.
The Thai currency is likely to move between 32.55 and 32.70 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen by a weakening dollar and gold sell-offs after the gold
However, the baht will not strengthen much because importers are waiting to buy the dollar if it reaches 32.50 to 32.60 the dollar. The market is also in a risk-off state in the short term which causes foreign investors to not invest in Thai stocks.
Foreign investors who want to buy the baht are waiting for the baht to weaken to 33 to the dollar while those who want to sell will wait for the baht to reach 32.50 to the dollar.
The market is worried about the inflation problem which might cause central banks to use tight monetary policy. The Consumer Price Index in the UK rose by 4.1 per cent in October which is higher than the market expected and was the highest in 10 years.
