Baht unlikely to strengthen much: market strategist
The baht opened at 33.14 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 33.23.
The Thai currency is likely to move between 33.10 and 33.25 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon put the fluctuation down to current market sentiments. He said that if the market is in a risk-on state, then interest in the dollar would fall and the baht would strengthen.
However, there are some risk factors, such as the Russia-Ukraine situation. This might put the market in a risk-off state, which would cause the dollar to advance.
Poon advised investors to wait for the results of key meetings by the European Central Bank and the Bank of England, which might come out with new respective monetary policy directions.
“If they go in for tighter monetary policies or are worried about inflation, the euro and pound might strengthen and cause the dollar to weaken,” he pointed out.
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Poon said the baht found support after the gold price rose to its key resistance level.
He expects the Thai currency to swing sideways and not strengthen much because basic economic factors are not yet in positive territory. However, he said, things may improve now that the government has reopened the country.
The support level for the Thai currency will be at 33.10 – a level importers are waiting for so they can purchase dollars. Meanwhile, the baht’s resistance level will be from 33.40 – a level eyed by exporters so they can offload their dollars, he added.
