’Volatile’ baht expected to move between 36.65 and 36.85 during day

The currency is expected to move between 36.65 and 36.85 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the baht might become highly volatile and weaken near its resistance level of 36.80-36.90 to the dollar amid concerns over Europe’s energy crisis, the Covid-19 situation in China and signs the US Federal Reserve may increase the interest rate.

However, Poon does not expect investors to “adjust” their possession of assets until the results of a key European Central Bank meeting on Thursday,

Poon said the baht could weaken during the day if the market is still in a risk-off state and investors offload more Thai stocks.

However, he expects stock sales to slow down as some investors are waiting for the index to drop and the baht to weaken before they purchase more shares.

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