Thursday, September 16, 2021

business

Easing of lockdown expected to strengthen baht though worries on Covid remain


The baht opened at 32.44 to the US dollar on Tuesday, unchanged from Monday’s closing rate.

55

View

The Thai currency is likely to move between 32.35 and 32.50 during the day, Krungthai Bank market strategist Poon Panichpibool said.

The baht was likely to strengthen due to economic recovery from the easing of the lockdown, which prompted foreign investors to invest in Thai assets last week.

Poon 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 the World Health Organization recommends it should be lower than 5 per cent.

He added that the baht was likely to fluctuate and weaken as the situation did not clearly point to improvement. He suggested keeping an eye on the virus situation 3-4 weeks after the first week of the lockdown easing.

The support level of the baht would be from 32.30 to 32.40, which is the price range importers are waiting for to buy dollars.

The Bank of Thailand might help the baht avoid volatility and ensure it moves within its range in the short term.

Published : August 31, 2021