Baht surges on back of weaker dollar, dividend payments
The baht opened at 33.90 to the US dollar on Friday, the highest in four months, strengthening from Thursday’s close of 33.85.
Krungthai Bank market strategist Poon Panichpibool predicted that the currency will move between 33.80 and 34 during the day.
He added that the baht may further strengthen to 34 as it is being pressured by a weakening dollar and dividend payments. However, he said, it may not cross the resistance level because exporters are waiting to sell the dollar.
Poon also advised investors to monitor foreign investors, as there is a chance that the baht will test the key resistance level of 34 if foreign investors sell a large number of stocks and bonds.
He added that there is a possibility the market will close at a high-risk level, though foreign investors are still trading in Thai assets.
However, he said, investors should use hedging tools to deal with high volatility in the currency market.
