Baht likely to fluctuate, weaken during the day: market strategist
The baht opened at 35.33 to the US dollar on Thursday, strengthening from Wednesday’s close of 35.50.
The currency is expected to move in a range between 35.25 and 35.50 on Thursday, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht advanced last night as the dollar declined, but the Thai currency is likely to fluctuate and weaken during the day.
It is easy for the baht to weaken to test its resistance level of 35.50 because foreign investors might continue to offload Thai stocks due to concerns over a shrinking economy, he said.
However, the pressure from stock sales may be limited as foreign investors might gradually purchase Thai bonds because yields around the world are decreasing and some investors feel the current Thai bond yield level has already reflected signs that the Bank of Thailand would increase the interest rate, Poon pointed out.
Moreover, the Japanese yen has declined heavily and might pressure the baht to weaken, but then the Thai currency could strengthen from gold transactions, he added.