Uncertainties loom despite the bahts recent gains
The baht opened at 32.44 to the US dollar on Friday, strengthening from Thursday’s closing rate of 32.48.
The Thai currency is likely to move between 32.35 and 32.50 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon said the baht was likely to fluctuate with the dollar if investors adjusted their dollar holdings before getting the US non-farm payrolls report.
Meanwhile, foreign investors might decrease their investments in Thai stocks as they were near the resistance level.
Foreign investors are keeping an eye on the Covid-19 situation in the country after the easing of lockdown measures, before deciding on increasing or decreasing their possession of Thai assets.
Poon is 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 that investors use various hedging tools if they feel uncertain about the direction the currency is heading in.