Baht sinks lowest in seven weeks, expected to swing sideways
The baht hit its lowest point in seven weeks, opening at 33.05 to the US dollar, down from Monday’s closing of 33.08.
The Thai currency is likely to move between 32.95 and 33.15 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He says the baht is likely to swing sideways after it was strengthened by the country’s reopening. Poon reckons it may be too early to welcome foreign tourists because the Omicron situation may worsen if the government cannot control infections.
Meanwhile, many foreign investors are selling Thai stocks, though some are waiting to sell the baht. The Bank of Thailand may also stabilise the currency after it strengthened quickly in the short term.
Poon speculates the baht will swing sideways in the 32.90 to 33 to the dollar range.
He added that the market is in a risk-on state as it knows that the US Federal Reserve will use a tight monetary policy, while investors are also interested in reports from listed companies.
