Tuesday, August 03, 2021

in-focus

Baht faces downward pressure from virus crisis, exodus of foreign funds


The baht opened at 31.48 to the US dollar on Tuesday, weakening from Monday’s closing rate of 31.45.

The Thai currency is likely to move between 31.40 and 31.55 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon predicted that the dollar would weaken as European economies became positive gradually.

He added that currencies in Asia, including the baht, would tend to weaken due to Covid-19.

In Thailand, as a result of the virus crisis, foreign investors had sold Thai stocks and bonds. Since last week, at least THB8.8 billion worth of bonds had been sold.

The weakening baht would face resistance at 31.50 to the US dollar, as it is a point at which exporters aimed to sell their dollars, Poon said.

Published : May 18, 2021

By : The Nation