Slow vaccination process could weaken baht
The baht opened at 31.47 to the US dollar on Monday, weakening from 31.45 at close on Friday.
The Thai currency is likely to move between 31.40 and 31.55 during the day and between 31.20 and 31.60 this week, Krungthai Bank market strategist Poon Panichpibool said.
He said the baht would tend to weaken due to the dollar’s direction, gold trade and wariness of foreign investors.
Poon explained that the dollar would strengthen in the short term. He urged investors to watch out for the US Federal Reserve’s statement.
The market strategist said that the distribution of Covid-19 vaccine in Thailand had still not accelerated, raising concerns among foreign investors about Thailand’s economic recovery. This was prompting them to sell their stocks in the Thai market, pressuring the baht to weaken.
To draw the investors back, the Thai government must distribute at least 500,000 doses of vaccine a day, Poon added.
However, the baht would not weaken sharply, as exporters aim to sell dollars when the baht reaches around 31.50 to 31.60 to the US currency, he said.
