Baht strengthens as investors appetite for risk rise
The baht opened at 33.52 to the US dollar on Friday, strengthening from Thursday’s closing rate of 33.54.
The Thai currency is likely to move between 33.45 and 33.60 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen slightly and swing sideways in the range between 33.40 to 33.50 to the dollar.
He said the baht continued to strengthen this week after the market was in a risk-on state which caused the dollar to weaken.
Moreover, foreign investors invested in Thai assets also helped the baht to strengthen.
He said that the baht might strengthen more if the gold price reaches near the key resistance level and investors sell the gold.
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Poon added that the baht should strengthen in the short term according to the technical sign.
The baht key resistance level is at 33.80 to the dollar, which is the level that exporters are waiting to close the risk. Meanwhile, the baht support level is at 33.40 to the dollar.
Poon added that the number of transactions at the end of the year is reducing so the currency market is likely to fluctuate.
