Baht up as investors believe Omicron will not get much worse in Thailand
The baht opened at 33.67 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.71.
The Thai currency is likely to move between 33.60 and 33.80 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is likely to fluctuate but it will not weaken much because the Monetary Policy Committee and foreign investors have speculated that the Covid-19 situation will not be much worse.
Foreign investors have not sold a large number of short term bonds because they expected the baht will not weaken much.
On Wednesday, the Monetary Policy Committee will release a statement about economic recovery and a new economic outlook which might slow down the baht weakening if the committee has a positive view of the economic recovery.
Poon said that the baht will reach the key resistance level at 33.80 to the dollar if it weakens. However, the baht should strengthen in the short term according to the technical sign.
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He thought that the baht will not weaken much if foreign investors does not sell a large number of Thai assets.
Meanwhile, the support level of baht would be from 33.40 to 33.50 to the dollar.
Poon said that investors will monitor the result of the Monetary Policy Committee’s meeting on Wednesday. The committee might keep the policy interest rate at 0.50 per cent if the committee has a positive view of the economic recovery.
