Stronger dollar, Omicron worries weaken baht
The baht opened at 33.56 to the US dollar on Friday, weakening from Thursday’s closing rate of 33.50.
The Thai currency is likely to move between 33.45 and 33.65 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might weaken as it was pressured by the strengthening dollar and the Omicron situation.
The Public Health Ministry raised the Covid-19 alert level to 4 so investors should speculate if foreign investors are worried about the Omicron situation.
Poon said that the market is in a risk-off state so foreign investors might reduce their possession of Thai assets or sell Thai stocks in the short term until the sentiment on the current market is better.
However, foreign investors have not sold a large number of short-term bonds so the foreign investors might expect the baht to weaken not much.
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The baht’s key support level would be from 33.60 to 33.75 after the baht weakened past the level of 33.50 to the dollar.
Meanwhile, the baht’s key support level would be from 33.20 to 33.30.
