Baht up a tad as foreigners resume investment in Thai assets
The baht opened at 33.66 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.70.
The Thai currency is likely to move between 33.50 and 33.70 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the market is in a risk-on state which causes foreign investors to invest in Thai assets. The baht will strengthen slightly if investors are investing in Thai assets.
The baht will not strengthen much until foreign investors are buying a large number of short term bonds.
Meanwhile, the resistance level of baht would be from 33.50 to 33.60 to the dollar, from importers buying the dollar.
Poon said that the currency market will be highly volatile in this period. Business operators should be cautious and use hedging tools to manage the risk.
