Market risk-off, mass sale of Thai stocks to make baht volatile after weak opening
The baht opened at 32.95 to the US dollar on Friday, weakening from Thursday’s closing of 32.92, though it’s likely to move between 32.85 and 33.05 during the day.
Krungthai Bank market strategist Poon Panichpibool said the baht is volatile and likely to move sideways despite the government easing prevention measures and reopening the country under the Test & Go scheme. The baht is also supported by the selling of gold.
However, the market is in a risk-off state causing the dollar to strengthen, while foreign investors are expected to continue selling Thai stocks.
The key support level for the baht would be from 32.80 to 32.90 – a level that importers are waiting for so they can buy dollars. Meanwhile, the baht’s key resistance level would be from 33.10 to 33.30 – a level eyed by exporters so they can offload their dollars, he added.