Baht weakens as Omicron cases surge in Thailand
The baht opened at 32.27 to the US dollar on Tuesday, weakening from Monday’s close of 32.16.
The Thai currency is likely to move between 32.20 and 32.35 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is likely to fluctuate and weaken as the number of Omicron patients is increasing, which might force the government to enforce strict prevention measures again.
However, the baht will not weaken much due to gold sales.
Poon suggested that speculating foreign investors might sell Thai stocks due to the increasing risk of a Russia-Ukraine conflict. Some investors might opt to decrease their possession of risky assets.
If foreign investors sell Thai stocks, it will pressure the baht to weaken. Poon added that the baht would weaken in the range of 32.40 to 32.50 to the dollar, the range exporters are waiting for to sell their dollars.
