Fluctuating baht hits 2-week high against dollar
The baht continued to fluctuate against the US dollar on Tuesday, hitting a two-week high of 35.38.
Krung Thai Bank currency analyst Poon Panichpibul said the Thai currency was bolstered by a gradual depreciation of the greenback, reflecting a risk-on sentiment in US financial markets. Some market players had also reduced their long dollar positions in anticipation of outcomes from the Federal Reserve meeting on Thursday, Poon said.
The baht gained additional support from a rebound in gold prices that saw investors sell the precious metal to take profits.
Poon said the baht had strengthened more than anticipated against the dollar, breaking through its initial support zone of around 35.50.
If the financial market remained risk-on, there was a chance it would strengthen further and test the next support zone of 35.20-35.30 per US dollar, he said.
Poon advised keeping a close watch on upcoming performance reports of major US tech companies, which would indicate whether foreign investors will continue to gradually re-enter the Thai asset market.
