Baht falters as dollar strengthens on back of dropping gold, weakening euro
The baht opened at 35.80 to the US dollar on Monday, weakening from Friday’s close of 35.74.
The Thai currency will likely move between 35.70 and 35.90 against the greenback during the day and between 35.30 and 36 during the week, Krungthai market strategist Poon Panichpibool predicted.
He said the baht is likely to fluctuate and weaken to test its resistance level at 35.90 as the dollar strengthens and the gold price heads downward.
Moreover, foreign investors may sell off Thai stocks or wait for their price to drop before buying them, so the baht is lacking supporting factors. He also mentioned that some exporters are selling the dollar, while some investors believe the baht will strengthen.
Meanwhile, the dollar may rise further if the market believes the US Federal Reserve will increase the interest rate to a fairly high level. He added that a slowdown in Europe is also supporting the dollar through the pressure on the euro.
The strategist has advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
