Baht could dwindle to 36.40 during the day: market strategist
The baht opened at 36.23 to the US dollar on Thursday, the highest in six years, weakening from Wednesday’s close of 36.10.
The currency is expected to move between 36.15 and 36.40 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said the dollar’s strengthening was an important factor that pressured the baht to decline more than expected.
The Thai currency will continue to weaken if market concern about a recession in Europe does not subside or if the European Central Bank does not signal that it would increase the interest rate.
Poon said the dollar might “invert” if the US Federal Reserve, too, does not signal it will go in for a heavy rate increase at the end of this month.
The baht has a chance to strengthen, but could even weaken past 36.50 to the dollar if the Chinese government enforces lockdown measures again and the number of Covid-19 patients in Thailand increases.
The Bank of Thailand might however intervene, which would slow the weakening of the baht, so investors will be able to close risks in time, he said.
Exporters might sell the dollar once the baht passes 36 to the US currency, which could also temper the baht’s weakening, Poon added.
