Trend of rising bond yield may push baht down
The baht opened at 30.22 to the US dollar on Tuesday, unchanged from Monday’s close.
The Thai currency is likely to move between 30.15 and 30.25, Krungthai bank market strategist Poon Panichpibool said.
He said that the baht would strengthen if the market was in risk-on state and the sales of emerging market (EM) assets reduce.
However, Poon warned investors about a fluctuation caused by the rising bond yield, as well as from the hope of an economic recovery.
He explained that these factors would pressure the financial markets, causing EM currencies, including the baht, to weaken or fluctuate.
