Baht strengthens after US inflation rate jumps 7%
The baht opened at 33.26 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 33.37.
The Thai currency is likely to move between 33.20 and 33.40 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht might strengthen slightly. He said the baht was supported by the dollar and the gold-selling but the Omicron situation pressured the baht. Foreign investors must heavily invest in the baht for it to strengthen past level 33 to the dollar.
He said that foreign investors were buying short term bonds less in the past two days as they speculated the baht might not strengthen or they are waiting for the baht to weaken.
Poon said that the baht might not strengthen much because importers might buy the dollar when the baht reaches between 33.10 to 33.20 to the dollar.
He added that investors are in a risk-on state after the US inflation rate jumped up to 7 per cent which support the US Federal Reserve to increase the interest rate.
