Baht unchanged, could fluctuate widely
The baht opened at 30.24 to the US dollar on Wednesday, unchanged from Tuesday’s close.
The Thai currency is likely to move between 30.20 and 30.35, Krungthai bank market strategist Poon Panichpibool said on Wednesday.
He said the baht was expected to fluctuate in a wide range and could strengthen if the market went into a risk-on state.
Poon alerted investors about a fluctuation caused by the rising bond yield and hope of an economic recovery.
He explained these factors would pressure financial markets, causing emerging market currencies and even the baht to weaken or fluctuate.
In case the baht strengthens, it would be only slightly as importers, especially of commodities, have bought the dollar, he said, adding that the purchasing power of the yen may also increase in the short term.
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