Tue, November 30, 2021

business

Covid-19 crisis, strengthening dollar pressure baht


The baht opened at 32.29 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 32.20.

The Thai currency is likely to move between 32.25 and 32.40 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon said the baht was still under pressure from the dollar and the Covid-19 situation especially in Thailand. Foreign investors have been selling their assets in the country as they are concerned about the virus crisis, he added.

Poon also said the financial market was in a risk-off state and this would increase demand for dollars in the short term. He explained that the demand comes in a bid to avoid market fluctuation. Meanwhile, the dollar is strengthening in this situation.

Poon predicted the baht would at maximum weaken to 32.50 per dollar after already reaching the 32 level.

He said exporters would sell their dollar holdings when the baht moved near 32.25-32.30.

Published : July 07, 2021

By : The Nation