Baht 'likely to swing sideways' as investors await US inflation results
The baht opened at 32.87 to the US dollar on Wednesday, strengthening from Tuesday’s close of 32.93.
The Thai currency is likely to move between 32.80 and 33.00 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht was likely to swing sideways before US inflation results from its Consumer Price Index to be released on Thursday.
Investors should watch Thailand's Monetary Policy Committee meeting, especially its opinion on inflation in the country and pressure from central banks, especially the US Federal Reserve, to increase the policy interest rate, he said.
If the MPC is worried about inflation or pressure from a planned increase in the US interest rate, the committee might also increase its rate, which would cause the baht to strengthen, Poon believed.
He said the baht would not strengthen much until there is a new factor to support the Thai economy or help the market take risks.
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He also felt the Thai currency would not strengthen much because importers are waiting to sell the dollar when it hits 32.80 to 32.90, while foreign investors are waiting to offload the baht.
