Baht firms up slightly as sideways movement continues
The Thai Baht opened this morning (December 27) at 34.55 baht per US dollar, slightly stronger than the previous day’s closing rate at 34.59 baht, according to Krung Thai Bank’s foreign currency analyst, Poon Panitpiboon.
During the preceding night, the Thai Baht had continued its sideways movement within the range of 34.51-34.63 baht per US dollar, experiencing slight fluctuations following the decrease in gold prices and the inflow of dollar buying transactions in the market.
Importantly, the Baht has not significantly weakened, especially after the rebound in gold prices near the resistance zone, corresponding to the slight depreciation of the dollar. This led market players to progressively sell gold to secure profits, with these transactions also contributing to the gradual strengthening of the Thai Baht.
The trend for the Baht is projected to continue sideways, close to our year-end target level of 34.50 baht per US dollar until new market factors are recognised, prompting clearer movements in the Baht.
Despite potential slight fluctuations in the Baht, the aforementioned depreciation has been mitigated by the flow of transactions involving profit-taking from gold sales. As gold prices attempt to adjust upward to test the short-term resistance zone, Poon said it is advisable to closely monitor the direction of gold prices going forward.
