Rising baht forecast to climb higher against dollar
The baht opened at 36.54 baht per US dollar on Wednesday, strengthening from 36.75 at the close of trading yesterday.
The dollar weakened after the 10-year US Treasury yield fell to 4.65% yesterday.
However, Krungthai Bank currency analyst Poon Panitpiboon cautioned the baht could face downward pressure if the Israel-Hamas conflict expands and results in higher oil prices that put pressure on Thailand's current account balance.
Meanwhile, foreign fund inflows to the Thai stock market are expected to fluctuate, maintaining the recent pattern of net buying alternating with net selling. Importers may also gradually buy US dollars as the baht strengthens.
As such, Poon estimates the baht’s resistance level at 37.25 per dollar. The Thai currency is not expected to weaken beyond 37.50 and may test the support zone of 36.25-36.30, Poon said.
Setting a stop-loss point at 37.50 baht per dollar would see investors selling at around 36.00 baht per dollar, he added.
The analyst expects the baht to trade at 36.35-36.65 per dollar today.
