Baht opens higher on Friday but downward pressure mounting
The baht opened at 35.85 to the US dollar on Friday, strengthening from Thursday’s close of 35.91.
The Thai currency will likely move between 35.75 and 36.00 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon cautioned that downward pressure on the baht was rising as the market goes risk-off, which is prompting the dollar to strengthen.
Foreign investors are also selling more Thai stocks, bonds and currency, which could trigger pressure on the baht to weaken in the short term, he added.
Moreover, the falling gold price might add drag to the Thai currency as investors if it nears the support level and attracts more buyers.
Poon estimated the baht’s resistance level at 36 to the dollar.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.