Baht weakens but may rally when gold price, economy improve
The baht opened at 33.37 to the US dollar on Monday, weakening from the previous closing of 33.35.
The Thai currency is likely to move between 33.30 and 33.45 during the day and between 33.25 and 33.50 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen if the Monetary Policy Committee speculated that the Thai economy will get better and the gold price increase.
The baht might swing sideways or slightly strengthen if the currency market has no clear movement at the end of the year.
The key support level for the baht would be at 33.3 to the dollar, which is the level at which importers are waiting to buy the dollar. Meanwhile, exporters are waiting to sell the dollar when the baht reaches 33.5 to the dollar.
Poon added that the dollar might swing sideways as the currency market has no clear movement at the end of the year which is the week before the Christmas holiday. The market also knew all monetary policies from central banks.
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Moreover, he said the dollar will be supported by the need for safe-haven assets if the market is in a risk-off state.
The previous week, the currency market was volatile and pressured by the tight monetary policies from central banks especially the US Federal Reserve that is preparing to increase the policy three times next year.
Poon suggests monitoring the Monetary Policy Committee’s meeting which might increase the policy interest rate and speculate that the Thai economic recovery will be better.
