Drop in gold strengthens baht; may fluctuate after release of US employment data
The baht opened at 33.34 to the US dollar on Friday, strengthening from Thursday’s closing rate of 33.45.
The Thai currency is likely to move between 33.25 and 33.40 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is likely to strengthen slightly due to the gold-selling. However, the baht might fluctuate from the US employment data. If the Nonfarm Payrolls report is better than expected, the US bond yield will increase. It will cause the dollar to strengthen and the gold price to decrease.
Poon expected the baht will not strengthen much until there is a new factor especially economic recovery factors which will support foreign investors to invest in Thai stocks.
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.
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.
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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
