Pulled down by the Covid crisis, baht on brink of 33 to the dollar
The baht opened at 32.96 to the US dollar on Monday, weakening from 32.88 at close on Friday.
The Thai currency is likely to move between 32.90 and 33.05 during the day and between 32.70 and 33.20 this week, Krungthai Bank market strategist Poon Panichpibool said.
He said the two factors that could determine the baht's direction was the dollar’s movement and the Covid-19 situation.
Poon predicted that the dollar could move sideways in the short term, while its strengthening factor was a demand for haven assets as the world is in the grip of the virus crisis.
However, the dollar would weaken if economic numbers of the US, such as the nonfarm payroll, were lower than observers’ expectations, he added.
Poon said that the baht could be pressured to touch 33 to the US dollar due to Covid-19 situation in Thailand. However, he believed the Bank of Thailand would help reduce currency fluctuation in some way.
This week, Poon suggested that investors monitor information in the US labour market, as well as performance reports of registered companies.