Baht strengthens, but could weaken if investors offload EMC
The baht opened at 30.75 to the US dollar on Wednesday, strengthening from 30.80 at close on Tuesday.
The Thai currency is likely to move between 30.65 and 30.80, Krungthai Bank market strategist Poon Panichpibool said.
He said that despite the baht strengthening in line with the dollar, the Thai currency is expected to fluctuate in a wide range or weaken again if investors offload more emerging market currencies (EMC).
Poon predicted that exporters would sell the dollar when the baht reached 30.80 per US dollar. Meanwhile, importers are likely to buy the US currency when the baht moves to 30.50. He said the baht could weaken to 30.90 at maximum.
He also predicted that it was possible the Thai currency would strengthen again if the dollar weakened and foreign funds flowed back into the Thai capital market.
SCB Securities meanwhile believes the baht will be supported by the weakened dollar today. Asian currencies will become more reliable for investors as businesses in the region gradually reopen.
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