Thai baht opens slightly stronger, but weakness looms
The currency is expected to fluctuate this week due to several factors including US economic data, presidential debate and global market trends
The Thai baht opened on Tuesday (September 10) at 33.90 baht per dollar, strengthening slightly from Monday’s closing at 33.96 baht per dollar.
Poon Panichpibool, a market strategist at Krungthai Global Markets, said the baht still had the potential to drop.
However, he said, this depreciation will take place gradually, though confidence will weaken if the currency breaks through the resistance zone of 34 baht to the dollar.
The Thai currency is expected to shift sideways to around 33.90 baht per dollar on Tuesday, with the resistance zone near 34 baht to the greenback.
On the support side, the baht may find itself at around 33.80 baht per dollar, as market players are waiting for the US CPI inflation report and the US presidential candidate debate on Wednesday.
The baht could also win support if foreign investors continue buying Thai assets, especially stocks.
However, volatility can be expected as the market digests economic data from China and the UK, particularly from the UK labour market report.
If the UK labour market data is worse than expected, signalling a clear slowdown, then investors may revise their outlook on the Bank of England’s interest rate policy, potentially putting some pressure on the pound.
The baht may continue to fluctuate based on shifting factors affecting its direction, such as market views on the US Fed's interest rates or adjustments in dollar holdings. Market players are advised to diversify risk management strategies by using tools such as options or local currencies to enhance exchange rate risk management.
