Baht strengths as dollar responds to Feds moves on quantitative easing
The baht opened at 33.85 to the US dollar on Tuesday, strengthening from the previous closing of 33.89.
The Thai currency is likely to move between 33.75 and 33.95 during the day and between 33.60 and 34 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might continue to weaken due to the Omicron variant of Covid-19 which caused investors to sell Thai assets.
The key resistance level for the baht would be at 34 to the dollar, which is the level at which exporters might sell the US currency and the Bank of Thailand might slow down the volatility.
If the baht weakens past the key resistance level, the baht might weaken to 34.15 and 34.40 to the dollar.
Poon said that the dollar might move sideways after the US Federal Reserve is speeding up to decrease quantitive easing which might increase the level of inflation. Meanwhile, the demand for safe-haven assets during the Omicron variant crisis especially the US 10-Year Bond that went down recently.
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