Baht opens slightly down against US dollar on Wednesday
The baht opened at 35.10 to the US dollar on Wednesday, weakening slightly from Tuesday’s close of 35.07.
The currency will likely move between 35.00 and 35.20 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said that the baht might weaken further if the currency market remains in a risk-off state, supporting short-term dollar strengthening and pressuring the gold price.
He added that foreign fund outflows from the Thai stock market may add to downward pressure on the baht.
However, he was doubtful the Thai currency would weaken significantly, projecting its key resistance level at 35.20-35.30 to the dollar.
Factors supporting the baht include foreign purchases of Thai short-term and long-term bonds as well as dollar selling by some exporters.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.