Baht strengthens to 5-month high against the dollar
The baht opened at 35.05 to the US dollar on Thursday, strengthening from Wednesday’s close of 35.26 to a five-month high after the central bank raised its key interest rate by a quarter point.
The currency will likely move between 34.95 and 35.20 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said conditions supporting the baht strengthening included a risk-on market, falling dollar, and gold sales after the price rebounded. Foreign inflows to the Thai stock market are adding to the upward pressure, he said.
The baht could test its support level at 35 to the dollar and even strengthen to 34.80 if these supporting market conditions persist, he added.
He forecast its short-term resistance level at 35.30-35.40, explaining that exporters may wait for the baht to weaken before selling the dollar.
Poon advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
