Baht rate unchanged, but could weaken
The baht opened at 31.01 to the US dollar on Thursday, unchanged from its closing rate on Wednesday.
The Thai currency is likely to move between 30.95 and 31.10 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He also said the baht would continue to fluctuate in line with the dollar, while the Thai currency would likely weaken.
However, the baht will weaken only slightly as exporters aim to sell their dollar holdings when the baht goes to around 31 to 31.10, Poon said.
He believed the Bank of Thailand would sell the dollar to reduce its foreign reserves and in turn delay the baht’s weakening.
“Thailand will probably decide to reduce the reserves in order to delay the baht weakening, and at the same time to avoid being accused as a currency manipulator,” he added.
