Baht volatility continues as market keeps close watch on US inflation
The baht opened at 34.20 to the US dollar on Friday, unchanged from Thursday’s closing rate.
The currency is expected to move in a range between 34.10 and 34.30 on Friday, said Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht might fluctuate and strengthen during the day as the market opens to more risks.
However, any rise in the baht’s value would be limited by importers buying dollars at the end of the month.
US inflation data may also cause fluctuation in the currency market. The market is worried the US Federal Reserve might increase the interest rate to rein in inflation, causing the dollar to strengthen and placing downward pressure on the baht.
Poon forecast the baht could swing in a range of 34 to 34.40 until new market factors arise.
He advises businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
