Thu, September 23, 2021

business

Amid weak sentiment, baht seen sliding towards 34 to the dollar


The baht opened at 33.46 to the US dollar on Tuesday, its lowest in three years, weakening from Monday’s closing rate of 33.41.

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

He said the baht might weaken further if importers accumulated dollars to hedge their risk from the baht sliding quickly and sharply.

Poon believed the Thai currency could easily fall to 34 to the US dollar in the short term, if the Covid situation worsens and dollar gains momentum. The dollar momentum would depend on the US Federal Reserve reducing quantitative easing or the US economy performing better than expected.

Poon did not expect the baht to strengthen soon as it continued to face downward pressure until the virus situation got better, which he expected to be in early September.

Published : August 10, 2021

By : The Nation