Baht weakens on increased investor speculation
The baht opened at 30.42 to the US dollar on Monday, weakening from the last close of 30.35.
The Thai currency is likely to move between 30.35 and 30.50 on Monday and between 30.20 and 30.70 this week, said Jitipol Puksamatanan, the head of SCB Securities’ Easy Invest team.
He explained that the baht had previously weakened from fluctuation in the financial market, as well as the decreased price of gold.
However, Jitipol believed that the latest movement of baht related mainly to investor speculation.
Meanwhile, Thailand’s economy had a trade surplus, and foreign exchange reserves were high.
He predicted that the baht would recover, while the dollar will stop strengthening. The baht will tend to stop at 30 per US dollar at the end of this quarter, he added.
This week, Jitipol suggested that investors should monitor the Fed’s opinion on increased US bond yields, as well as the country’s financial policies.
This would relax the market and at the same time weaken the dollar.
Also, several countries in Europe will lift their lockdown. The euro will strengthen from this situation.