Baht opens stronger but could weaken in the short term, says analyst
The baht opened at 31.37 to the US dollar on Friday, strengthening slightly from Thursday’s closing rate of 31.45. The Thai currency is likely to move between 31.35 and 31.45 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He predicted that the baht would weaken in the short term due to the market situation and the Covid-19 crisis in Thailand. However, the weakening of the dollar will prevent the baht from sliding further.
Poon said the baht’s resistance would be around 31.50 to 31.60 to the dollar, as exporters were expected to offload their dollars at that rate.
Also, the support point would be when the baht moves closer to 31.30, when importers would want to purchase the dollar.
Poon, however, believed the baht would strengthen in the near future because of a weakening dollar as well as Covid-19 vaccinations for the general Thai public, which would draw investors back to the country.