Baht plummets to 26-year low against dollar
The baht opened at 37.60 to the US dollar on Monday, weakening from Friday’s close of 37.37 to a 26-year low.
The currency will likely move between 37.50 and 37.75 against the greenback during the day and between 37.20 and 37.90 during the week, Krungthai market strategist Poon Panichpibool predicted.
Poon said that the fluctuating baht might weaken to near its resistance level between 37.80 to 37.90 if the market remains in a risk-off state over concern of another US Federal Reserve rate hike and the falling gold price.
He advised monitoring inflows to Thailand after a slowdown in selloffs of Thai assets by foreign investors helped curb the baht’s weakening.
Meanwhile, he said the dollar could continue to strengthen and advised close monitoring of US inflation via the latest consumer price index. Concern over recession is also supporting the dollar as a safe-haven asset, he added.
The market strategist also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
As well as the US inflation report for September, investors are advised to watch for the International Monetary Fund’s latest twice-yearly World Economic Outlook, due this week.
