‘Volatile’ baht expected to swing sideways
The baht opened at 33.00 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.05.
The Thai currency is likely to move between 32.90 and 33.10 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is volatile and likely to swing sideways. However, it might weaken before a key US Federal Reserve meeting as investors are in a risk-off state, causing the dollar to strengthen.
Poon said the baht will not weaken much because the market is volatile and supporting the gold price. Gold sales might cause the baht to strengthen.
The key support level for the Thai currency will be between 32.80 and 32.90 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level will be from 33.10 to 33.20 – a level eyed by exporters so they can offload their dollars, he added.
