US retail report to swing baht sideways despite strengthening dollar
The baht opened at 32.76 to the US dollar on Tuesday, weakening from Monday’s closing of 32.73.
The Thai currency is likely to move between 32.70 and 32.85 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon added that the baht is likely to swing sideways despite pressure from a strengthening dollar if the US retail report is better than expected. The baht is supported by gold sell-offs and foreign investors’ interest in short-term bonds.
However, the increasing number of new Covid-19 patients in Europe and China might cause the dollar to strengthen or stay at the same level.
Meanwhile, exporters might sell the dollar while foreign investors might invest in baht if the baht weakens from 32.90 to 33 to the dollar. Foreign analytics changed their opinions that the baht might strengthen to 32.50 baht to the dollar while importers are waiting to buy the dollar if the baht reached 32.60 to the dollar.
