Lockdown easing, hopes of economic recovery likely to bolster baht
The baht opened at 32.30 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 32.35.
The Thai currency is likely to move between 32.15 and 32.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon predicted the baht would drift sideways, near 32.20 to the US dollar. Investors are keeping an eye on US employment data results due out tomorrow, which would show the pace of economic recovery and might make the dollar itself move sideways.
The baht was likely to strengthen due to a hopeful economic recovery following an easing of the lockdown, which prompted foreigners to invest in Thai assets last week, he said.
Poon is however still concerned about the Covid-19 situation in Thailand, as he is not sure if the present pandemic wave has been contained because “not enough proactive testing is being carried out”.
Investors, especially importers, might close risks when the baht strengthens. He recommended investors use various hedging tools if they feel uncertain about which direction the currency is heading in.