Mon, September 27, 2021

business

Baht slides to 33.27, the lowest in nearly three years


The baht hits its lowest level in nearly three years, opening at 33.27 to the US dollar on Friday, weakening from Thursday’s closing rate of 33.24.

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It was the lowest the baht had slid to in two years and nine months.

The Thai currency is likely to move between 33.25 and 33.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon said that the baht would continue to weaken due to the Covid-19 situation. Importers have also purchased US dollars, as they are afraid the baht could weaken quickly and sharply, he said.

Poon believed the Thai currency could easily weaken to 33.50 per US dollar in the short term if the Covid situation worsened and the dollar momentum rose. The momentum would rise if supported by the US Federal Reserve’s statement to decrease quantitative easing or the economy of the US was better than expected.

Moreover, the baht will continue to weaken until the Covid-19 situation gets better, which is expected to be in early September, Poon added.

Published : August 06, 2021

By : The Nation