Tue, September 28, 2021

business

As baht slumps to three-year low, expert predicts further slide


The baht opened at 33.42 to the US dollar on Monday, weakening from last week’s closing rate of 33.38.

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It was the lowest the baht had slid to in almost three years.

The Thai currency was likely to move between 33.40 and 33.55 during the day and between 33.20 and 33.70 this week, Krungthai Bank market strategist Poon Panichpibool said.

The baht’s trend would depend on the dollar’s movement and the Covid-19 situation worldwide, especially in Thailand, he explained.

Poon said that the dollar would gain momentum if the US Federal Reserve reduced quantitative easing this year. However, the dollar's gains might be restricted by Europe’s economy in case the latter continued recovering and performing better than expection.

Meanwhile, the resistance of the baht was nearly at 33.80 per US dollar. Poon pointed out that the currency would weaken to the level, as the Covid-19 situation in Thailand had not improved and foreign investors are selling their assets in the Thai market.

He said the baht would strengthen if the government could distribute 500,000 doses of efficient vaccine per day to solve the Covid problem.

Last week, the US labour market recovered better than expected, which supported the idea that the Fed might decrease quantitative easing this year, causing the US dollar to continuously strengthen.

Published : August 09, 2021

By : The Nation