Baht opens the week stronger against the dollar
The baht opened at 32.46 to the US dollar on Monday, strengthening from last week’s closing rate of 32.62.
The Thai currency is likely to move between 32.35 and 32.55 during the day and between 32.25 and 32.75 this week, Krungthai Bank market strategist Poon Panichpibool said.
Poon predicted that the baht would drift sideways in the short term. Foreign investors are keeping an eye on the Covid-19 situation in the country after the easing of lockdown measures, before adjusting their possession of Thai assets.
The dollar could be supported by the US Federal Reserve’s move to reduce quantitative easing (QE). The dollar weakened after US employment data was worse than expected.
If the European Central Bank signals to decrease QE, the euro will strengthen and weaken the dollar.
Poon added that the key resistance level of the baht was 32.80 to the dollar, which is the level at which exporters might sell the US currency.
Meanwhile the key support level of the baht was 32.80 to the US dollar, the level that some importers are waiting for to buy the dollar.