Baht strengthens but movement in line with foreign funds flows

The Thai currency is likely to move between 29.95 and 30.05 and between 29.85 and 30.15 within this week, Krungthai market strategist Poon Panichpibool said.

He said the dollar tends to move sideways in the short term. Moreover, the currency would be affected negatively in case the market goes in risk-off mode, due to investors’ disappointment with the US stimulus measures or the Covid-19 situation in the world intensifies.

In Thailand, the baht has still moved in line with the dollar and foreign funds flow. Poon said that investors must watch the purchasing power of the dollar of importers, when the baht moves between Bt29.85 to Bt29.90 per US dollar.

Meanwhile, he said that exporters aimed to sell their dollar when the currency is around Bt30.10 to Bt30.15.

This week, the market is waiting for the Fed meeting outcome on Thursday, as well as financial results of big tech companies, such as Apple, Microsoft and Tesla, and economic reports of some countries.