Wednesday, June 16, 2021

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Baht ‘may continue to weaken’


The baht opened at 31.38 to the US dollar on Thursday, weakening from its close of 31.36 on Wednesday.

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The Thai currency is likely to move between 31.35 and 31.45 during the day, Krungthai Bank market strategist Poon Panichpibool said.

 

He mentioned that the new wave of Covid-19 in Thailand was the key problem this time around.

 

Chulalongkorn University’s virology centre reported on Wednesday that samples collected from entertainment venues in Bangkok’s Thong Lor area carried the British strain, which spreads “1.7 times faster” than the normal strain leading to a “viral load that is far higher” in the patient.

 

Poon said market players would sell their Thai assets if the government could not deal with this new and more severe wave in the country. However, he predicted that the direction of the Thai stock market would not change sharply or drastically, as there was still an opportunity for investment.

 

Poon noted that “the baht is still moving in line with the dollar, as well as the new Covid-19 situation in the country”. He said it was possible the baht would weaken more than 31.30 per US dollar.

 

He also predicted that the baht would move between 31.50 to 31.75 per US dollar during the week following the Songkran festival.

 

Published : April 08, 2021

By : THE NATION