Baht opens stronger but market sentiments can make it fluctuate
The baht opened at 33.20 to the US dollar on Tuesday, strengthening from Monday’s closing rate of 33.29.
The Thai currency is likely to move between 33.10 and 33.30 during the day, Krungthai Bank market strategist Poon Panichpibool said.
Poon put the fluctuation down to current market sentiments. He said if the market is in a risk-on state, then interest in the dollar will fall and strengthen the baht.
However, there are some risk factors to speculation, such as the Russia-Ukraine conflict, which may affect the currency market in the short term.
Poon added that the baht will swing sideways and not strengthen much because the basic economic factors have not fully recovered. However, he said, things may improve now that the government is opening the country again.
The key support level for the Thai currency will be at 33.10 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level will stand at 33.50 – a level eyed by exporters so they can offload their dollars, he added.
