Baht might continue to weaken: market strategist
The baht opened at 33.81 to the US dollar on Wednesday, the highest in almost four months, weakening from Tuesday’s close of 33.75.
Krungthai Bank market strategist Poon Panichpibool predicted the Thai currency would move between 33.70 and 33.90 during the day.
Poon said the baht might weaken as it was pressured by the strengthening dollar and dividend transactions. Furthermore, some investors are waiting for the gold price to come down so they can buy back the precious metal, which might also pressure the baht.
He expected exporters to sell the dollar at 33.80-34 as long as the market does not turn heavily risk-averse, which would add pressure to the baht.
Poon suggested monitoring foreign investor transactions. He said there was a chance the baht could test the key resistance level of 34 if foreign investors sold a large amount of stocks and bonds.
With high volatility in the currency market, businesses should use hedging tools such as options to manage risks, he advised.
