Weakening baht shored up by foreign investors
The baht opened at 32.76 to the US dollar on Friday, weakening from Thursday’s close of 32.63.
The Thai currency is likely to move between 32.65 and 32.85 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht weakened less than expected as foreign investors bought Thai stocks and short-term bonds worth more than 33 billion baht.
The dollar, however, strengthened after US inflation figures were higher than expected, sparking speculation that the Federal Reserve will increase the interest rate to a level higher than investors expect.
Poon said these factors will slow down the strengthening of the baht in the short term.
He said foreign speculators should buy Thai assets so the baht does not weaken much.
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Poon believes importers are waiting to buy the dollar at 32.60, while exporters will sell the currency if it hits between 32.80 and 33.
The currency market has been volatile after the US inflation rate climbed to 7.5 per cent, which is more than the market expected and the highest since 1982.
