Baht hits lowest point in a week after Fed statement
The baht hit its lowest point in almost a week, opening at 33.30 to the US dollar, down from Tuesday’s closing rate of 33.41.
The Thai currency is likely to move between 33.20 and 33.40 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen slightly. He said the baht was supported by the dollar and the gold-selling but the Omicron situation pressured the baht. Foreign investors must heavily invest in the baht for it to strengthen past level 33 to the dollar.
The currency market is in a risk-on state after the US Federal Reserve’s chairman statement to Senate Banking Committee was the same as the market expected.
The Fed’s chair said the Fed will increase the policy interest rate more than expected to control inflation while the Fed will be able to reduce the balance sheet fasten from the past.
