Baht expected to see limited appreciation in the short term

The Thai currency is likely to move between 31.05 and 31.20 during the day, Krungthai Bank market strategist Poon Panichpibool said.

He said the baht would tend to strengthen from several factors, such as the risk-on state of the market and the purchasing power of foreign investors for Thai assets.

However the currency will not strengthen sharply, as importers aim to buy foreign currencies when the baht is at around 31.00 to 31.10 to the dollar.

Poon said the Bank of Thailand was likely to control the baht’s appreciation, due to the increase in its foreign exchange reserves.