Weakening baht could reach new resistance level of 36.75: market strategist
The baht opened at 36.65 to the US dollar on Thursday, weakening from Wednesday’s close of 36.47.
The currency is expected to move between 36.50 and 36.75 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht could continue to weaken as it had swept past its resistance level of 36.50 to the dollar, so there is a risk it would reach a new resistance level of 36.75.
Poon noted that the baht was pressured because of a strengthening dollar and the gold price heading downward.
However, the baht’s weakening might slow down if foreign investors continue to opt for Thai stocks, as an economic recovery is likely after the Bank of Thailand signalled it may increase the interest rate gradually, he said.
The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
