Fri, August 19, 2022

business

Baht falls further over pressure from dumping of Thai assets, stocks


The baht opened at 35.32 to the US dollar on Tuesday, weakening from Monday’s close of 35.30.

The currency is expected to move in the range of 35.20 to 35.40 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon added that the baht may strengthen due to the weakening dollar and the market will be open to more risks.

There is still a chance of the baht fluctuating due to pressure from foreign investors selling off Thai assets, especially stocks.

Meanwhile, bond transactions are slowing down because investors believe high bond yields reflect the Bank of Thailand’s decision to increase the interest rate.

The baht’s resistance level is 35.40-35.50 to the dollar, the level at which exporters will sell the dollar.

Poon does not expect the baht to weaken past this level unless a lockdown is widely enforced in China, forcing investors to dump assets in emerging Asia markets.

Poon advised investors to use hedging tools like options to manage their risks in the highly volatile currency market.

Published : June 21, 2022

By : THE NATION