Baht could weaken to resistance level of 36.80: market strategist
The baht opened at 36.70 to the US dollar on Wednesday, unchanged from Tuesday’s closing rate.
The Thai currency is expected to move between 36.60 and 36.80 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht was likely to fluctuate and weaken to test its resistance level of 36.80 if the market descends into a risk-off state, which would support the dollar to weaken while pressuring the euro.
He advised investors to closely monitor the baht’s volatility especially during the US Federal Reserve meeting on Thursday, as it comes during the long holiday in Thailand, so the trade volume might be lower than normal during the period.
Poon feels the dollar might decline while the baht could strengthen if the Fed does not signal another interest rate increase by a big margin.
However, he said to beware of investors selling their assets in the Emerging Asia market if the Chinese government enforces additional lockdown measures.
Poon also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
