Baht may appreciate if stronger UK pound pulls down the dollar
The baht opened at 32.58 to the US dollar on Friday, unchanged from Thursday’s closing rate.
The Thai currency is likely to move between 32.50 and 32.65 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen if the dollar weakens. The dollar will weaken if the UK’s retail report is better than expected and cause the pound to strengthen.
The baht strengthen to near the key resistance level at 32.50 to the dollar, which is the level that foreign investors expected. The baht will not strengthen much more if there is no new factor. Foreign investors are also selling the baht which will cause the baht to slow down in strengthening.
For the key resistance level, importers are waiting to buy the dollar at 32.50 to the dollar. Meanwhile, the market is also in a risk-off state in the short term which causes foreign investors to not invest in Thai stocks.
Moreover, the gold price that fell down might cause investors to buy on dips and pressure the baht to weaken.
