The Thai currency is likely to move between 30.05 and 30.25 on Tuesday, Krungthai market strategist Poon Panichpibool said.
Poon said that the financial markets were still in risk-off state, due to concerns about the Covid-19 crisis around the world. Also, the market is monitoring the US Treasury Department under Janet Yellen, the new Treasury secretary, he added.
Yellen’s opinion on the dollar could weaken the currency, as she wants it to move in line with the market mechanism.
The market strategist explained that if the US political situation stabilises, the Biden government would push stimulus measures and the market would return to a risk-on state again.
In Thailand, the baht’s main factor was fund flows from foreign investors, which depends on the Covid-19 situation in the country.
In the short term, he advised investors to keep an eye on stimulus packages issued by the government this week. Poon added that the packages could soon strengthen the baht.