Wide fluctuation of baht seen in the short term

The Thai currency is likely to move between 30.40 and 30.55 on Monday and between 30.20 and 30.70 this week, Krungthai Bank market strategist Poon Panichpibool said.

Poon said the baht situation had not changed since last week. In the short term, the currency will fluctuate in a wide range, in line with the dollar.

The baht and other emerging market currencies tend to weaken from investors’ selling, as the US bond yield has continually risen.

In addition, importers and foreign corporations are still purchasing the dollar, pressuring the baht to strengthen in a narrow range.

Meanwhile, the dollar will be sold in case the baht weakens to 30.50 to the dollar, the market strategist added.