THURSDAY, March 28, 2024
nationthailand

Baht weakens against dollar, but limited room for volatility

Baht weakens against dollar, but limited room for volatility

The baht opened at 31.61 to the US dollar on Monday, weakening from Friday’s close at 31.59.

The Thai currency is likely to move between 31.50 and 31.70 on Monday and between 31.25 to 31.75 this week, said Jitipol Puksamatanan, head of markets strategy at SCB Securities.
The strategist said that the market situation had changed too much after the high appreciation of the dollar compared to late April, while the US bond yield’s value did not change.
This situation made a ‘risk-off’ state at this time advantageous to investors in US safe haven assets, rather than the assets of other countries.
Jitipol advised investors to monitor the dollar continually, forecasting that it would be more volatile before the first debate between the US presidential candidates scheduled for Tuesday (Wednesday Thailand time).
Also, the nonfarms payrolls will be announced on Friday. The dollar index this week would move between 93.5 to 94.9 points from the present 94.5 points, the strategist added.
Jitipol said that the baht had weakened due to the strengthening of the dollar. However, the recovery in Thai exports and foreign exchange reserves increasing to US$255.3 billion were enough to ensure the baht does not fluctuate and become a problem in the future.

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