Baht could seesaw today: market strategist


The baht opened at 32.68 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 32.62.

The Thai currency is likely to move between 32.60 and 32.75 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon feels the baht might be volatile during the day. Many foreigners are selling Thai assets including the baht as it has strengthened recently, he said.

Poon said the baht would drift sideways because investors are watching for a host of new factors, especially the Covid-19 situation in the country. This comes after the Centre for Covid-19 Situation Administration warned there could be a new wave in October if the public lets their guard down and does not continue to strictly abide by anti-virus measures.

Also, investors are awaiting results of a key European Central Bank meeting, as it might signal a decrease in quantitative easing, which would affect the currency, he said, adding that it’s not clear yet in which direction exactly the euro or dollar would head.

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Poon recommended investors use various hedging tools if they feel uncertain about the direction of the baht.