Baht might weaken but resistance level will be 38: market strategist
The baht opened at 37.80 to the US dollar on Thursday, weakening from Wednesday’s close of 37.58.
The currency will likely move between 37.70 and 38.00 against the greenback during the day, Krungthai market strategist Poon Panichpibool predicted.
He speculated that the baht might be pressured to weaken as the dollar advances amid increased gold purchases as prices of the precious metal went down after the US Federal Reserve chairman signalled he would continue to increase the interest rate.
This is in line with Poon’s view that investors should beware of a volatile baht and there could be a chance the Thai currency would weaken after the Fed chairman’s statement.
Poon said the baht might weaken but its resistance level will be 38 to the dollar.
However, he said the baht will not weaken much from its resistance level while its support level would be around 37.50 to 37.60, the level that importers are waiting for to buy the dollar.
Poon advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Related stories
- Baht advances but could be affected by results of key US Fed meeting
- Baht halts skid as currency market goes risk-off
- Baht could continue strengthening to 37.50: market strategist
