Baht strengthening may be limited in short term: market strategist

The Thai currency will likely move between 37.90 and 38.15 against the greenback during the day, Krungthai market strategist Poon Panichpibool predicted.

He said the dollar’s strengthening might slow down as the market is in a risk-on state, but the baht is still being pressured by gold purchases and other currency transactions such as the Japanese yen.

Meanwhile, foreign investors off-loaded long-term bonds worth 5.8 billion baht in the past two days, so Poon expected any strengthening of the baht to be limited in the short term.

He did not expect the baht to exceed its support level of 37.80 to the dollar until there is a significant factor, such as the dollar weakening or foreign investors returning to buy more Thai assets.

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