Omicron worries weaken baht
The baht opened at 33.61 to the US dollar on Tuesday,weakening from Monday’s closing rate of 33.59.
The Thai currency is likely to move between 33.50 and 33.75 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might weaken due to the worry from the Omicron variant of Covid-19 in the country. Investors should speculate the investment from foreign investors as they were previously invested in Thai stocks.
However, foreign investment could change the direction in the short term especially in the short term bonds.
Poon said that the baht might reach the key resistance level at 33.80 to the dollar if it continues to weaken. It could test the key resistance level at 34 to the dollar if it weakens past the previous level.
Poon said that the baht should strengthen in the short term according to the technical sign. He thought that the baht will not weaken much if foreign investors does not sell a large number of Thai assets.
Related News
Baht weakens but may rally when gold price, economy improve
Rising gold prices, weaker dollar strengthen baht
Baht advances after US Fed meeting sees dollar weaken
Meanwhile, the support level of baht would be from 33.40 to 33.50 to the dollar.
