Baht up on Friday’s opening but fluctuation predicted
The baht opened at 37.93 to the US dollar on Friday, strengthening from Thursday’s close of 38.06.
The currency is expected to move between 37.85 and 38.15 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht could weaken as the currency market is in a risk-off state. However, any weakening would be limited if the gold price continues to rise.
Moreover, the rapid strengthening of the yuan would likely support the baht.
Poon estimated the baht’s current resistance level at 38.20-38.30 to the dollar.
He pinpointed the Thai currency’s support level at 37.80-37.90.
The market strategist also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.