Baht strengthens a tad as dollar weakens
The baht opened at 33.28 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 33.31.
The Thai currency is likely to move between 33.20 and 33.35 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen slightly even the dollar weaken because the baht strengthened much before the US Federal Reserve which baht reached 33.45 to the dollar.
Moreover, investors are buying gold as the price went down again which will pressure the baht to weaken.
He said foreign investors will have to invest in Thailand for the baht to reach 33.00 to the dollar. In the short term, Poon expected foreign investors will not invest in Thai stocks until they see a sign of economic recovery after the country opening.
The key resistance level for the baht would be from 33.40 to 33.50 to the dollar, which is the level at which exporters might sell the US currency.
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The baht’s key support level would be from 33.00 to 33.10, the level some importers are waiting for so they can buy dollars, he added.
Moreover, foreign investors set a stop loss level at 33.00 to the dollar. If the baht strengthen past the level, the baht might strengthen suddenly.
