Baht to swing sideways on back of US Fed meeting
The baht opened at 32.98 to the US dollar on Monday, unchanged from the previous closing.
The Thai currency is likely to move between 32.85 and 33.05 during the day and between 32.80 and 33.20 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is likely to swing sideways as it might fluctuate against the dollar before the US Federal Reserve meets on Tuesday.
He said investors will also speculate on the Omicron situation in the country, while the easing of measures by the government will affect short-term foreign investments.
Poon also said the baht will strengthen from the sale of gold if the price of the precious metal stays at between 1,830 and 1,840 dollars per ounce.
The key support level for the Thai currency would be at 32.80 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level would be at 33.20 – a level eyed by exporters so they can offload their dollars, he added.
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Poon said the dollar may strengthen before the Fed’s meeting if the market is highly volatile, which will encourage investors to hold on to their dollars instead of safe-haven assets.
However, he said the dollar might weaken if the Federal Reserve does not send a clear signal about raising the policy rate to beyond the market’s expectations or decrease the balance sheet fast.
