Baht slide could slow after passing resistance level of 38/dollar: market strategist
The baht opened at 38.03 to the US dollar on Friday, unchanged from Thursday’s close.
The currency will likely move between 37.70 and 38.00 against the greenback during the day, forecast Poon Panichpibool, Krungthai market strategist.
Poon speculated the baht might weaken since the dollar is strengthening and the market remains in a risk-off state. Also, the lack of signals from China that it will ease its zero-Covid measure would place downward pressure on the yuan and affect the Asian currency market, he said.
However, the baht’s weakening will likely slow now it has passed the resistance level of 38 per dollar, Poon said.
He advised monitoring the gold price and foreign inflows to Thai stocks and bonds, saying that if neither changed significantly, the baht would not weaken much beyond its resistance level.
He forecast the baht’s support level at 37.50 to 37.70, at which point importers would buy the dollar.
He advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
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