Baht weakens as foreign investors sell off short term bonds worth THB4 billion in 2 days
The baht opened at 33.43 to the US dollar on Friday, weakening from Thursday’s closing rate of 33.36.
The Thai currency is likely to move between 33.35 and 33.50 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is weakening after the foreign investors had sold 4 billion baht of short term bonds in two days. They cut their loss as the baht might reach the level at 33.50 to the dollar.
Meanwhile, Poon suggested speculating the dollar because it might be sold after the dollar is strengthening and reached the resistance level. The dollar might go down in the short term if there is no new factor to support the dollar. However, the Covid-19 situation might support the dollar in this period.
Poon believed that the baht will reach the key resistance level of 33.45 to 33.50 to the dollar which is the level at which exporters are waiting to sell the dollar and foreign investors are buying the baht. Moreover, the baht might strengthen if the gold price goes up.
The support level of baht will be from 33.10 to 33.20 to the dollar which exporters are buying the dollar.
