Baht could strengthen with market in risk-on state: strategist
The baht opened at 35.35 to the US dollar on Thursday, strengthening from Wednesday’s close of 35.56.
The currency is expected to move between 35.20 and 35.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht was likely to fluctuate and strengthen as the market was in a risk-on state amid a weakening of the dollar.
Moreover, the baht has also found support after foreign investors purchased Thai stocks.
However, the Thai currency will not weaken past its support level of 35.20 because investors are waiting to purchase the dollar at this level while other foreigners might sell the US currency for profit, Poon felt.
He advised investors to beware of volatility from Emerging Asia assets, which could pressure the baht to weaken as some investors are worried the Chinese government might impose more lockdown measures to control Covid-19 in some areas.
Concern over the situation forced Chinese and Hong Kong stock indexes to head down while the yuan was also seen to weaken, Poon added.