Baht expected to move sideways amid pressure from dollar and foreign fund flow
The baht opened at 31.08 to the US dollar on Monday, unchanged from its closing rate on Friday. The Thai currency is likely to move between 31.05 and 31.15 during the day and between 30.90 and 31.30 this week, Krungthai Bank market strategist Poon Panichpibool said.
He predicted that the baht would tend to move sideways.
Poon said the two factors that could weaken the baht were the dollar’s direction and funds flow of foreign investors into Thailand.
The market strategist said the dollar could possibly fluctuate in keeping with the Fed’s viewpoint on quantitative easing.
In addition, he said that the dollar would be supported by the weakening of the pound due to the Covid-19 crisis in the UK.
Regarding foreign funds flow, Poon said that investment by foreign investors would depend on their confidence in Thailand, especially in the mass Covid-19 vaccination drive.