Baht rally may have hit ceiling: market strategist
The baht opened at 36.04 to the US dollar on Monday, weakening from Friday’s close of 35.94.
The currency will likely move between 35.90 and 36.10 against the greenback during the day and between 35.60 and 36.30 during the week, Krungthai market strategist Poon Panichpibool said.
He added that the baht’s upward trend may slow and even reverse if the price of gold drops quickly.
The baht surged back from 38.31 per dollar on October 19 to a five-month high on Friday.
However, Poon said foreign funds were now flowing out of the Stock Exchange of Thailand as it neared its resistance level while Thai bond yields, especially long-term yields, fell last week.
Meanwhile, the dollar is reaching its support level zone and could rebound in the short term if the market grows concerned over a possible US interest rate hike, or risk factors force it into a risk-off state, he said.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.