Baht likely to fluctuate, could weaken as dollar advances: market strategist

The currency is expected to move between 36.30 and 36.55 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the baht is likely to fluctuate across a wide range and could weaken as the dollar is strengthening.

Poon however speculated that the baht would not weaken past its key resistance level of 36.50 as exporters are waiting to offload the dollar at that level.

Moreover, foreign investors do not appear to be in a hurry to sell their Thai assets and Poon believes they will in fact purchase more Thai stocks as prices head down while investors are wary of taking risks in the US and European stock markets.

However, he noted the baht could be volatile today, Wednesday, especially as China announces various economic results.

If the Chinese economic data is much worse than expected, it might pressure Emerging Asia assets or cause currencies to weaken, he said.

Meanwhile, the baht might fluctuate as the dollar and euro might come under pressure if investors are certain the European Central Bank would decide to increase the interest rate, Poon pointed out.

The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.