Baht expected to swing sideways, not strengthen much
The baht opened at 33.18 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.22.
The Thai currency is likely to move between 33.10 and 33.25 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 would fall and the baht would strengthen.
However, there are some risk factors, such as the Russia-Ukraine situation. This might put the market in a risk-off state, which will cause the dollar to advance.
Poon said the baht found support after the gold price went up and reached its key resistance level.
Poon expected the Thai currency to swing sideways and not strengthen much because basic economic factors are not yet in positive territory. However, he said, things may improve now that the government has reopened the country.
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The support level for the Thai currency will be at 33.10 – a level importers are waiting for so they can purchase dollars. Meanwhile, the baht’s resistance level will be from 33.40 to 33.50 – a level eyed by exporters so they can offload their dollars, he added.
