Baht likely to swing sideways unless new factors surface
The Thai baht opened at 33.23 to the US dollar on Friday, strengthening from Thursday’s closing rate of 33.25.
The currency is likely to move between 33.20 and 33.35 to the greenback during the day and even swing sideways unless there is a new factor, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht was supported by the dollar and the sale of gold, though the Omicron situation is pulling it down.
Foreign investors must devote large sums to the baht for it to go beyond the level of 33 to the dollar, he said. Over the past few days, foreign investors sold 6.3 billion baht of short-term bonds as they were not in a hurry to invest in the baht and were ready to sell it when it reached their target.
Poon said the baht may not strengthen much as importers may only buy the dollar when the baht is between 33.10 and 33.20 to the greenback.
He added that the currency market is volatile because investors are selling technology and growth stocks after the US Federal Reserve’s vice chair Lael Brainard sent out signals that an increase in the interest rate and tighter monetary policy to solve inflation is imminent.