Rising gold prices, weaker dollar strengthen baht
The baht opened at 33.41 to the US dollar on Friday, strengthening from Thursday’s closing rate of 33.42.
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 baht is likely to strengthen slightly because the dollar is weakening. Moreover, the gold price is increasing to near the level of 1,800 dollars per ounce which will support the baht to strengthen.
Meanwhile, foreign investors are investing in Thai stocks as they recently bought Thai stocks for 4.7 billion baht total. However, They will not invest in the baht much more until they saw how mergers and acquisitions transactions at the end of this year go.
Poon confirmed that the baht is likely to strengthen in the short term according to the technical analysis.
He added that the baht resistance level would be at 33.30 to the dollar while the support level would be at 33.50 which was the weakest level before the Fed meeting.
