Baht weakens as investors cautiously await Fed meeting outcome
The baht opened at 33.42 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.37.
The Thai currency is likely to move between 33.40 and 33.50 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is likely to fluctuate as investors are in a cautious state because the dollar strengthened in the short term before the US Federal Reserve’s meeting.
Poon said that the market will be back in a risk-on state which will cause the dollar to go down if the result from the meeting is the same as the market expected or the Fed send a signal to increase the interest rate lower than the market expected.
Moreover, the gold price might go up which will cause the baht to strengthen if the Fed does not hasten to use the monetary policy as the market expected and the dollar weakens.
Poon said that the baht is likely to swing sideways or weaken before the Fed meeting but might strengthen after the meeting.
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Poon said that the baht resistance level would be at 33.70 to the dollar while the support level might be at 33.30 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.
