Baht likely to strengthen in response to US Fed meeting on Thursday
The baht opened at 33.39 to the US dollar on Tuesday, unchanged from Monday’s closing rate.
The Thai currency is likely to move between 33.35 and 33.45 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the market is in a risk-off state which will cause the dollar to strengthen in the short term. Foreign investors are also not investing in Thai assets.
However, Poon believed that the booster dose of vaccines will reduce the spread of the Omicron variant of Covid-19 which will help foreign investors to hold Thai assets which will cause the baht to swing sideways in short term. He said the baht is also likely to strengthen if the result of the US Federal Meeting on Thursday is the same as the market expected.
Poon said that the baht is likely to strengthen as it was not weakened past the level of 34 to the dollar because it strengthen recently. The baht is likely to strengthen as exporters might sell the dollar at the end of the year.
Poon said that the baht support level might be from 33.30 to 33.40 to the dollar which is the level that some investors will help the baht to not strengthen quickly unless foreign investors decide to invest more in the baht.
