Thai currency expected to continue weakening amid virus crisis
The baht opened at 31.29 to the US dollar on Wednesday, weakening from its close of 31.27 on Tuesday. The Thai currency is likely to move between 31.25 and 31.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He predicted that in the short term the baht would weaken due to several factors, including the Covid-19 crisis in Thailand and other countries.
Poon explained that the crisis has forced people to hold onto their safe-haven assets – the dollar, for example.
He predicted the baht throughout the week would come under pressure from foreign currency purchases by numerous companies as they move to pay dividends.
Poon also predicted that the baht would move in a wide range as importers have bought the US currency as the baht strengthened to 31.15 per dollar.
