Baht may weaken from volatility, risk-off state of market
The baht opened weaker at 33.43 to the US dollar on Monday from its closing rate of 33.38.
The currency is expected to move between 33.30 and 33.50 during the day and between 33.10 and 33.60 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.
He also expects the baht to weaken if the market is highly volatile and in a risk-off state. The government’s announcement of Covid-19 becoming an endemic will protect the baht from weakening too much, he said.
The key support level for the Thai currency will be at 33.20 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level will stand at 33.50 – a level eyed by exporters so they can offload their dollars, he added.
He said the dollar might drop if the market is in a risk-on state, which will happen if listed companies report better earnings than expected.
Moreover, the pound sterling or euro may pressure the dollar if the Bank of England or the European Central Bank signal the use of tight monetary policies.
