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Baht ‘likely to weaken further’


The baht opened at 31 to the US dollar on Wednesday, weakening from a close of 30.95 on Tuesday.

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The Thai currency is likely to move between 30.95 and 31.10, Krungthai Bank market strategist Poon Panichpibool said.

 

He expected the Monetary Policy Committee to freeze the interest rate at 0.50 per cent as a result of Wednesday’s meeting.

 

Poon said the Bank of Thailand (BOT) would aim to ensure liquidity in the financial system for sections that are in need of it via measures such as soft loans or asset warehousing.

 

He also said the baht would continue to fluctuate in line with the dollar, while the Thai currency would likely weaken on Wednesday.

 

Poon said the BOT would sell the dollar to reduce its foreign reserves and in turn delay the baht’s weakening.

Published : March 24, 2021

By : THE NATION