Baht expected to swing sideways
The baht opened at 33.12 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.09.
The currency is likely to move between 33.05 and 33.20 to the greenback during the day and even swing sideways unless it is influenced by a new factor, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon believed the baht is likely to swing sideways on a strengthening dollar as investors were concerned the US Federal Reserve would increase the interest rate more than expected in March.
Moreover, foreign investors were offloading Thai stocks, further pressuring the baht.
However, hopes of the country reopening fully helped the baht to advance. And if the gold price goes up, the baht might see a further strengthening.
The key support level for the Thai currency would be from 32.90 to 33.00 – a level which importers are waiting for so they can purchase dollars. Meanwhile, the baht's key resistance level would be from 33.20 to 33.30 – a level eyed by exporters so they can offload their dollars.
