Baht weakens against dollar on Friday but experts see upswing ahead
The baht opened at 34.03 to the US dollar on Friday, weakening from Thursday’s close of 33.87.
The currency will likely move between 33.90 and 34.20 against the greenback during the day and between 34.00 and 34.25 in the short term, Krungthai market strategist Poon Panichpibool said.
He said the baht weakened due to the strengthening dollar and falling gold price. He added that the Thai currency could face further pressure from positive US economic data such as non-farm payrolls, wage growth and the Purchasing Managers’ Index.
However, he did not expect the baht to weaken further as exporters are waiting to sell dollars. Also, foreign investors expect the baht may strengthen.
Poon said the baht could rise to 33.50 to the dollar on the return of Chinese tourists and gold sales.
He also advised investors to use strategies to prevent risk from currency exchange volatility.
Kobsit Silpachai, Kasikornbank's head of capital market research, expects the baht to strengthen in the first quarter as tourism recovers before weakening in the second quarter due to dividend payments and foreign fund outflows.
Koraphat Vorachet, director of investment research and investor services at Capital Nomura Securities, said stocks in airlines, power plants and industrial estates would benefit from the strengthening baht as a large proportion of their debt is in foreign currency.
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