Baht declines after foreign investors offload Thai assets
The baht opened at 32.63 to the US dollar on Thursday, weakening from Wednesday’s closing rate of 32.60.
The Thai currency is likely to move between 32.60 and 32.70 during the day, Krungthai Bank market strategist Poon Panichpibool said
Just like yesterday, he said, foreign investors decided to sell their Thai assets due to uncertainty caused by the Covid-19 situation in the country. This situation would lead to a gradual weakening of the baht, he added.
Moreover, Poon said, the baht and other Asian currencies could weaken if the yuan drops. This could occur if Chinese economic data disappoints observers as it would show that China’s economy is recovering only at a slow rate.
Under this scenario, the Chinese government would implement more relaxed economic measures, while foreign investors would delay investing in that country, Poon said, adding that the yuan would therefore lose supporting factors and finally weaken.
