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Baht likely to weaken amid Covid-19 crisis, rising dollar: market strategist


The baht opened at 33.36 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.27.

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The Thai currency is likely to move between 33.25 and 33.40 during the day, Krungthai Bank market strategist Poon Panichpibool said.

He said the baht was likely to fluctuate and weaken due to the Covid-19 crisis and the rising dollar.

He expected the US currency to receive support in the short term from demand for safe-haven assets due to the Covid-19 situation worldwide. But this would happen only if the situation in the US worsens.

A factor that could affect support for the dollar is the Federal Reserve’s decision to reduce quantitative easing this year, Poon pointed out.

Poon said the baht’s resistance level would be 33.50 to the dollar, as exporters continued to sell the US currency.

If the situation in Thailand gets worse, along with the strengthening of the dollar, the baht could weaken past this resistance level, Poon added.

Published : August 18, 2021

By : The Nation