Worsening Covid-19 situation to weigh on baht: bank strategist
The baht opened at 32.82 to the US dollar on Thursday, strengthening from Tuesday’s closing rate of 32.97.
The Thai currency is likely to move between 32.75 and 32.90 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon said the baht strengthened mostly due to a weakening US dollar. However, the Thai currency was unlikely to strengthen substantially soon due to the worsening Covid-19 situation in Thailand, he said.
Foreign investors were still offloading their assets, such as stocks in Thailand, which would lead to a weakening of the baht, he predicted.
But Poon believed the Thai currency would not weaken below 33 per US dollar if investors felt “safe” from the worldwide Covid-19 situation and hence did not need to hold onto safe-haven assets.