Baht slumps to lowest level in 2 months
The baht hit its lowest point in two months, opening on Thursday at 32.90 to the US dollar, down from Wednesday’s closing of 33.04.
The currency is likely to move between 32.85 and 33.05 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 said the baht would strengthen as investors sell their gold. However, he said it would swing sideways and not strengthen much if there was no supporting transaction from foreign investors or other factors that would help it strengthen.
He said the dollar might advance due to the demand for safe-haven assets.
Moreover, the currency market is volatile so foreign investors might offload more Thai stocks.
Poon also said the baht would see support from sales of gold if the price of the precious metal stayed between 1,830 and 1,840 dollars per ounce.
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The key support level for the Thai currency would be from 32.80 to 32.90 – 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, he added.
