Thursday, September 23, 2021

business

Baht expected to move sideways as markets await US Fed meeting outcome


The baht opened at 32.76 to the US dollar on Friday, weakening from Thursday’s closing rate of 32.74.

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The Thai currency is likely to move between 32.70 and 32.85 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon predicted the baht would move sideways as investors were waiting for important factors, such as the US Federal Reserve’s move to reduce quantitative easing (QE).

Poon expected the baht to strengthen in the short term amid hopes of an economic recovery.

The government might ease lockdown measures and foreign investors might invest in Thai stocks because the situation was stable and might be resolved soon.

He was concerned about the Covid-19 situation in Thailand, as he was not sure if the spread of the virus had been contained because enough proactive testing was not being done. The positive rate in Thailand was higher than 20 per cent, while WHO recommends it should be lower than 5 per cent.

He added that the baht was likely to fluctuate and weaken as the situation was not clearly better.

Published : August 27, 2021