Baht expected to weaken further
The baht opened at 31.31 to the US dollar on Wednesday, weakening from its close of 31.25 on Tuesday.
The Thai currency is likely to move between 31.20 and 31.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He mentioned that the dollar was still a major factor in the baht’s direction but the US currency did not weaken this time as investors were hopeful the US economy would recover more quickly than expected. Therefore, it was almost impossible for the baht to strengthen, he said.
Poon advised investors to monitor fund flows in the stock market.
He predicted that several foreign currencies would be purchased in the next months for the purpose of paying dividends, and the baht would weaken more from this financial activity.
The second quarter would see the baht weakening the most, he added.
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