Baht remains unchanged despite investors’ inflation worries
The baht opened at 33.79 to the US dollar on Tuesday, unchanged from the previous closing rate.
The Thai currency is likely to move between 33.70 and 33.90 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that investors started to worry about inflation more due to the price increasing of crude oil or natural gas, which pressured the baht to weaken. The cost and transportation of goods will be high if the energy prices stay high with the supply chain problem. It will also cause a trade balance deficit and current account deficit.
The baht is also supported by the gold price increasing which causes investors to sell.
However, the baht will not strengthen clearly soon in the short term.
Poon added that the baht might test the key resistance level of 34.00 to the dollar if the dollar strengthens. The dollar might strengthen if the employment data from NFP on Friday is great.
