Baht volatile over stronger dollar, worsening Covid-19 situation
The baht opened at 33.62 to the US dollar on Tuesday, unchanged from Monday’s closing rate.
The Thai currency is likely to move between 33.50 and 33.70 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is likely to fluctuate during the day as the dollar strengthened after investors believed that the US Federal Reserve will increase the policy interest rate faster than expected while the Omicron situation was worsening.
However, Poon said that the baht will not weaken much as foreign investors continue to buy Thai assets including short term bonds which might cause the baht to strengthen.
The key resistance level for the baht would be at 33.75 to the dollar while the key support level would be from 33.30 to 33.40.
