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WEDNESDAY, December 07, 2022
Baht likely to touch 37.40 to the dollar today: market strategist

Baht likely to touch 37.40 to the dollar today: market strategist

THURSDAY, October 06, 2022

The baht opened at 37.30 to the US dollar on Thursday, strengthening from Wednesday’s close of 37.40.

The Thai currency will likely move between 37.20 and 37.40 against the greenback during the day, Krungthai market strategist Poon Panichpibool predicted.

He said the baht closed in on the 37.30 level as investors were more cautious even after data showed the US economy performed better than expected, especially the labour sector.

Investors are also closely watching nonfarm payrolls and wage growth results due on Friday.

Poon said the weakening of the baht might slow if foreign investors purchase more Thai assets, especially stocks, after the forward price-to-earnings ratio saw a reduction of 15 times near the 10-year average, making Thai shares more attractive.

As for the bond market, foreign investors might purchase more bonds again, especially those that are long term, after a yield increase, he said.

Furthermore, the auction of the new 10-year government bond (LB336A) also reflects high demand for bonds, Poon added.

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