Fri, July 01, 2022

business

Baht jumps against dollar as bumpy ride continues


The baht opened at 34.42 to the US dollar on Friday, strengthening from Thursday’s close of 34.52.

The Thai currency is expected to move in a range between 34.35 and 34.55 to the dollar on Friday, according to Krungthai Bank market strategist Poon Panichpibool.

Poon said the baht rose due to a weakening dollar. But he added that the market has not fully opened to risk so the baht might fluctuate and weaken further to its resistance level at 34.70 to the dollar.

The Thai currency would be supported by sales of gold but will not strengthen significantly unless foreign investors begin buying Thai stocks continuously, Poon said.

The expected ceiling for the baht is 34.40 to the dollar, at which point importers would purchase the greenback.

Poon advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.

Published : May 20, 2022

By : THE NATION