Baht weakens, expected to fluctuate in line with dollar
The baht opened at 30.35 to the US dollar on Thursday, weakening from Wednesday’s close of 30.32.
The Thai currency is likely to move between 30.30 and 30.45, Krungthai Bank market strategist Poon Panichpibool said on Wednesday.
He expected the baht to move in a wide range, fluctuating in line with the dollar as well as the sale of emerging market assets.
Poon again alerted investors to a possible fluctuation caused by the rising US bond yield and hope of an economic recovery in that country.
He said this would pressure financial markets, causing emerging market currencies and even the baht to weaken or fluctuate.
He added that exporters are not presently selling the US currency as the baht could move to 30.50 per dollar.
The baht has weakened lately compared to the dollar, despite foreign funds flowing into Thai stocks and bonds amid investors’ hopes that the economy will recover once lockdowns are lifted totally.
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