Baht stable against dollar as market waits for today’s US inflation report
The baht opened at 36.43 per US dollar on Thursday, weakening just 0.02 points from Wednesday’s close of trade.
There was little movement in the US dollar, bonds and gold prices, as the market waited to hear the US consumer price index (CPI) report later on Thursday.
Stability was also spurred after the ongoing Israel-Hamas conflict showed no signs of escalating into a regional conflict.
Krung Thai Bank estimated the baht's resistance level at between 36.60 and 36.80 per dollar, with an initial support level of 36.25-36.30.
If the baht strengthens past the latter level, it could test the crucial support level at 36.00, the bank’s currency analyst said.
Thai assets are still facing high volatility due to uncertainty in Thailand’s monetary policy and concern over China’s economic recovery. Krung Thai Bank suggested that businesses diversify their risk management tools, including options, to hedge foreign exchange risks.
Additionally, local currency transactions are another option to manage risks from exchange rate fluctuations.
Krung Thai Bank anticipates the baht will move in the range of 36.20-36.60 ahead of the US CPI inflation report today.
