Baht up slightly against dollar but all eyes on Thai export data
The baht opened at 34.68 to the US dollar on Thursday, strengthening slightly from Wednesday’s close of 34.70.
The currency will likely move between 34.55 and 34.75 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said that the baht’s recent strengthening was supported by the market’s risk-on state and gold sales.
However, amid dollar strengthening reflected by a rise in the US Dollar Index (DXY) to nearly 104 points, he expected the baht to swing sideways and not strengthen much.
Moreover, foreign investors are selling short-term bonds in the belief that the baht will strengthen.
He expected the baht’s support level to be at 34.50-34.60 to the dollar.
He warned that the baht might fluctuate and weaken on Thursday if Thailand’s export numbers shrank, resulting in a higher-than-expected trade deficit.
Poon also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
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