THURSDAY, March 28, 2024
nationthailand

Baht may strengthen during trade today: market strategist

Baht may strengthen during trade today: market strategist

The baht opened at 34.26 to the US dollar on Thursday, unchanged from Wednesday’s closing rate.

The currency is expected to move in a range between 34.15 and 34.35 on Thursday, predicted Krungthai Bank market strategist Poon Panichpibool.

Poon said the baht might fluctuate and strengthen during the day as the market is open to more risks and the dollar stabilises after the US Federal Reserve increased the interest rate according to market expectations.

The baht found support from increased gold sales as the price of the precious metal moved close to its resistance level from $1,850 to $1,860 (THB63,643) per ounce.

With the baht strengthening quickly, investors have changed their views on hedging tools.

Importers are waiting to buy the dollar if the baht strengthens to 34 or lower.

But exporters might offload the dollar if the baht weakens from 34.30 to 34.40.

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

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