Baht could continue strengthening: market strategist
The baht opened at 38.05 to the US dollar on Wednesday, strengthening from Tuesday’s close of 38.29.
The currency will likely move between 37.90 and 38.15 against the greenback during the day, Krungthai market strategist Poon Panichpibool predicted.
He said the baht had strengthened faster than expected because the dollar declined as the market was in a risk-on state.
If the market continues to be open to more risks, foreign investors might come back to purchase Thai stocks and this would support the baht’s strengthening, Poon said.
However, he speculated that the strengthening of the Thai currency would be limited to between 37.80 and 37.90 to the dollar as importers were gradually purchasing the dollar now that the month is drawing to a close.
Furthermore, some big investors have returned to a “wait and see” state as they closely watch results of key central bank meetings involving the European Central Bank and the Bank of Japan at the end of the week.
Poon advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
