Short-term weakening of baht possible amid new Covid wave worries
The baht opened at 32.86 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 32.91.
The Thai currency is likely to move between 32.80 and 32.95 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht was likely to weaken due to the uncertainty in the Covid-19 and political situations in the country.
The Centre for Covid-19 Situation Administration (CCSA) warned that there might be a new Covid-19 wave at the end of this month.
The key resistance level for the baht would be from 32.90 to 33.00 to the dollar, which is the level at which exporters might sell the US currency, Poon said.
He added that the dollar might be volatile and strengthen if US economic data were better than expected, and the US Federal Reserve decreased the quantitative easing faster or higher. The pressure from the dollar will not affect the baht from strengthening in the short term.