Baht may fluctuate over US inflation, China economy concerns
The baht opened at 36.58 to the US dollar on Friday, strengthening from its previous close of 36.62.
The currency is expected to move between 36.45 and 36.70 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht was likely to fluctuate and weaken as the dollar advanced and amid investors’ concerns that China might enforce more lockdown measures.
However, if information on China’s economy is better than expected and supports the market to open to more risks, the weakening of currencies in Emerging Asia might slow down.
He added that the baht’s new resistance level is 36.70 to the dollar.
Poon suggested investors beware of volatility before the US inflation information is revealed later in the day as it might affect investors’ opinion of the US Federal Reserve’s direction.
He believes investors’ uncertainty over the Fed’s plans is likely to spark a fluctuating market.
He advised investors to use hedging tools such as options to manage risks in the highly volatile currency market.
