Strengthening dollar and Covid crisis pull baht down
The baht opened at 32.81 to the US dollar on Friday, weakening from Thursday’s closing rate of 32.75.
The Thai currency is likely to move between 32.75 and 32.90 on Monday and between 32.60 and 33 this week, Krungthai Bank market strategist Poon Panichpibool said.
Poon explained that there were two negative factors affecting the baht, the dollar's direction and the Covid-19 situation in Thailand and other countries.
He said the dollar tended to be supported by the demand as a safe haven asset when market players were still concerned about the Covid-19 crisis around the world. The worse the situation, the more the dollar will strengthen, Poon concluded.
At the same time, some foreign investors have sold their assets in Thailand amid uncertainty in the country, causing the baht to drop.
Poon said that the baht's resistance was at 32.80 to the US dollar. If the baht passed that point, it could possibly reach 33.
