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Baht up, but worries over Omicron, gold price might see currency skid

The baht opened at 33.67 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.71.

The Thai currency is likely to move between 33.60 and 33.80 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said that the baht strengthen on Tuesday due to the dollar strengthening but the baht might be pressured by the worry of the “Omicron” variant that will cause the baht to weaken.

Moreover, the gold price dropped down to 1,775 dollars per ounce after the US Federal Reserve’s president supported to decrease in quantitive easing. Some investors will buy on dips which will pressure the baht.

However, the baht might strengthen if the scientific research reveals that the “Omicron” variant of Covid-19 is not worrying too much.

The key resistance level for the baht would be from 33.80 to 34 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 at 33.40, the level some importers are waiting for so they can buy dollars, he added.

Poon said that the currency market will be highly volatile in this period. Business operators should be cautious and use hedging tools to manage the risk.

Published : December 01, 2021