Covid-19 situation, dividends to foreign investors could weaken baht
The baht opened at 31.20 to the US dollar on Monday, strengthening from its close of 31.29 on Friday.
The Thai currency is likely to move between 31.15 and 31.30 on Monday and between 31.05 and 31.55 this week, Krungthai Bank market strategist Poon Panichpibool said.
Last week the global economy continued to recover, especially the economies of the US and China.
Poon suggested that investors monitor the dollar’s direction, the Covid-19 crisis in Thailand, and the purchase of foreign currencies.
He expected the dollar to weaken or be stable, as the pandemic situation in the US had not worsened.
Poon said that if the market showed concern about the Covid-19 situation in Thailand, the baht may not move in line with the dollar.
He added that some companies had purchased foreign currencies for paying dividends to foreign investors and this could weaken the baht.
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