Worsening Covid situation in Thailand expected to maintain pressure on baht
The baht opened at 32.88 to the US dollar on Friday, weakening from Thursday’s closing rate of 32.86.
The Thai currency is likely to move between 32.80 and 32.95 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon said the baht was unlikely to strengthen anytime soon due to the worsening Covid-19 situation in the country. The situation is not grim, but foreign investors have already offloaded their assets, such as stocks in Thailand, leading to a weakening of the baht.
In the short term, the performance of registered companies will tend to surpass observers' expectations, if the market feels relaxed about the Covid-19 situation around the world. This scenario would also weaken the dollar, since investors need not hold the currency in order to cushion against fluctuations in the market, Poon said. And if the dollar weakens, the baht could escape falling to 33 to the US currency, he added.