Thursday, September 16, 2021

business

Exporters sale of dollars checks bahts slide despite strengthening US currency


The baht opened at 33.35 to the US dollar on Friday, unchanged from Thursday’s closing rate.

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The Thai currency is likely to move between 33.30 and 33.45 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon explained that the baht had not weakened in proportion with the strengthening of the dollar, as exporters continued to sell dollars, while investors were short-selling the Thai currency as the Covid-19 situation has almost reached its worst point.

He said the baht was likely to fluctuate and weaken due to the Covid-19 crisis and the rising dollar, amid demand for safe-haven assets and the Federal Reserve’s likely decision to reduce quantitative easing (QE) this year.

Investors’ stocks might be affected if the Fed decides to decrease liquidity support or QE. Investors will temporarily decrease their investments in Asian emerging markets, as they might be worried about the effects of a reduction in QE, such as the QE Taper Tantrum incident in 2013.

He expected the key resistance level would be between 33.40 and 33.50 to the US dollar, as exporters are waiting to offload more dollars.

He said the key support level would be around 33.00 to the dollar, which is the price range importers are waiting for before they make purchases. If there are large transactions, the baht might be volatile on Friday.

Published : August 20, 2021

By : The Nation