Baht heads south as investors target gold
The baht opened at 33.14 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.11.
The Thai currency is likely to move between 33.00 and 33.20 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might fluctuate as foreign investors decreased their possession of baht while the moving average convergence divergence signalled that the baht is weakening.
Meanwhile, the gold price that was decreasing and dropped to the key support level of 1,780 to 1,800 dollars per ounce affected the baht heavily. Some investors are buying on dips caused the baht to weaken.
However, the baht will not weaken much because exporters are selling the dollar which caused the key support level of baht to be from 33.20 to 33.30 to the dollar.
