Baht faces downward pressure from virus crisis, exodus of foreign funds

The Thai currency is likely to move between 31.40 and 31.55 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon predicted that the dollar would weaken as European economies became positive gradually.

He added that currencies in Asia, including the baht, would tend to weaken due to Covid-19.

In Thailand, as a result of the virus crisis, foreign investors had sold Thai stocks and bonds. Since last week, at least THB8.8 billion worth of bonds had been sold.

The weakening baht would face resistance at 31.50 to the US dollar, as it is a point at which exporters aimed to sell their dollars, Poon said.