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WEDNESDAY, February 08, 2023
Baht opens stronger but selloffs may make it swing sideways

Baht opens stronger but selloffs may make it swing sideways

MONDAY, October 03, 2022

The baht opened at 37.83 to the US dollar on Monday, strengthening from Friday’s close of 37.85.

The currency will likely move between 37.70 and 37.95 against the greenback during the day and between 37.50 and 38.30 during the week, Krungthai market strategist Poon Panichpibool predicted.

Poon said the baht may also swing sideways, so he suggested monitoring foreign investments. If foreign investors sell fewer Thai assets, it might slow down the baht’s weakening.

In the short term, Poon estimates the baht’s resistance level will remain at 38.20-38.40 to the dollar, as some exporters and foreign investors may sell the dollar for profits.

He expects the support level to be at 37.50 to the dollar, a level at which importers are waiting to buy the currency.

Poon reckons the dollar’s momentum will slow down and may weaken amid currency intervention in several countries.

However, it may also strengthen if the UK government insists on using its economic stimulus and tax-reducing measures which may pressure the pound and pull it down.

The market strategist also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.

He added that investors are waiting for labour information from the US, such as non-farm payrolls, and the UK government’s budget plans.