Sunday, September 19, 2021

business

Baht likely to fluctuate until Covid situation becomes lucid: market strategist


The baht opened at 33.25 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 33.35.

133

View

The Thai currency is likely to move between 33.20 and 33.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon explained that investors have changed their view of the Covid-19 situation, which led to the weakening of the dollar.

The baht may strengthen in the short term on hopes that the situation in Thailand was likely past its worst point, he said.

However, Poon believed the baht was likely to fluctuate and weaken as the situation was not clearly better. The baht has of course also been affected by the strengthening dollar.

The Thai currency might slow down when it comes close to its support level of 33.00-33.10 to the US currency, the price range importers are waiting for to exchange their dollars, he said.

The baht will not strengthen much below 33 to the dollar as investors are buying up the US currency as the month draws to a close.

If the situation worldwide does not improve with the US Federal Reserve’s move to reduce quantitative easing (QE), stock prices might be affected, Poon noted.

Foreign investors will temporarily decrease investments in Asian emerging markets as they might be worried about the effects of a reduction in QE, much like the QE “taper tantrum” in 2013, he added.

Published : August 24, 2021

By : The Nation