Surge in Omicron patients may pull down baht
The baht opened at 33.53 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 33.57.
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 is likely to fluctuate. He said the baht might slightly weaken if the number of Covid-19 patients is continuously increasing.
He speculated that the baht will not weaken much and swing sideways in the range at 33.50 to the dollar because the market is in a risk-on state and cause the dollar to swing sideways or go down.
He said that the baht might strengthen more if the gold price reaches near the level of 1,810 dollars per ounce.
Poon added that the baht should strengthen or swing sideways in the short term according to the technical sign.
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The baht key resistance level would be from 33.70 to 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.
