Wed, December 08, 2021

business

Baht expected to strengthen


The baht opened at 30.72 to the US dollar on Thursday, unchanged from Wednesday’s close.

The Thai currency is likely to move between 30.65 and 30.75, Krungthai Bank market strategist Poon Panichpibool said.

He expected the baht to strengthen from the decline in the US 10-year bond yield and inflow of foreign funds.

“However, the Thai currency won’t strengthen much due to mass buy-ups of the dollar, while the baht may weaken to between 30.75 and 30.90 if the dollar strengthens due to currency market volatility,” he said.

He advised exporters to avoid foreign-exchange risks when the baht weakens as the weakening dollar and inflow of foreign funds would boost the Thai currency.

“Exporters may consider using alternative tools, such as the currency option, to deal with risks as the currency market faces high volatility,” he added.

Meanwhile, Jitipol Puksamatanan, the head of the Easy Invest team at SCB Securities, advised investors to keep an eye on the capital market as the baht would be under pressure due to the change in economic direction.

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Published : March 11, 2021

By : The Nation