Sat, September 25, 2021

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Baht hits strongest level in two months as easing of lockdown seen boosting economy


The baht opened at 32.53 to the US dollar on Monday, strengthening from last week’s closing rate of 32.64, the strongest in almost two months.

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The Thai currency is likely to move between 32.40 and 32.60 during the day and between 32.30 and 32.80 this week, Krungthai Bank market strategist Poon Panichpibool said.

Poon said the dollar weakened heavily in the last week after the Jackson Hole Economic Symposium, where US Federal Reserve chair Jerome Powell did not give as much information about easing quantitative easing as was expected.

The baht was likely to strengthen due to economic recovery from the easing of lockdown. The demand for Thai assets from foreign investors and the risk-on situation might pressure the dollar to weaken.

He added that the US dollar index is likely to contract and move sideways. The Fed might decrease QE to support the dollar’s momentum if employment increases more than expected, such as 800,000 to 900,000 people.

The Bank of Thailand might help the baht to move sideways around its support level from 32.30 to 32.40 to the US currency, the price range importers are waiting for to buy dollars, he said.

Published : August 30, 2021