Baht strengthens as foreign investors shrug off Omicron concerns
The baht opened at 33.63 to the US dollar on Monday, strengthening from the previous closing of 33.65.
The Thai currency is likely to move between 33.55 and 33.75 during the day and between 33.30 and 33.90 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is likely to fluctuate due to the Omicron situation in the country. He said that investors should speculate investments from foreign investors.
However, Poon said that foreign investors will not sell a large number of Thai assets because they are not worried about the Omicron situation too much.
Poon said that the baht will not weaken past 34 to the dollar. if the spreading is not at the crisis.
The baht’s key support level would be from 33.30 to 33.40, the level some importers are waiting for so they can buy dollars, he added.
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The key resistance level for the baht would be from 33.75 to 34.00 to the dollar, which is the level at which exporters might sell the US currency.
Poon said that the dollar is likely to strengthen if the US Federal Reserve’s sent a signal to increase the policy interest rate faster than expected. The dollar might go down slightly if the demand for safe-haven assets decreases.
