FRIDAY, March 29, 2024
nationthailand

Baht rebounds to 2-month high as dollar weakens

Baht rebounds to 2-month high as dollar weakens

The baht opened at 36.17 to the US dollar on Friday, strengthening from Thursday’s close of 36.94 to a two-month high.

The currency will likely move between 36.00 and 36.30 against the greenback during the day, forecast Krungthai market strategist Poon Panichpibool.

The market is in a risk-on state, boosting the baht to near its support level at 36 to the weakening dollar, with foreign investors pouring back into Thai stocks, he said.

However, he warned of exchange rate volatility if worse-than-expected GDP data from the UK confirms recession in the world’s sixth-largest economy, which would see the pound weaken.

He advised that rapid strengthening of the baht may slow and go into reverse if new factors emerge, such as the dollar strengthening or other currencies weakening.

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

nationthailand