Tue, August 16, 2022

in-focus

Baht opens weak but market conditions may push it up later: strategist


The baht opened at 35.35 to the US dollar on Tuesday, weakening from Monday’s close of 35.32.

The currency is expected to move between 35.25 and 35.40 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.

Poon reckoned that the baht may strengthen as the dollar weakens, but there is also a chance it may fluctuate.

Investors should be cautious as foreign buyers may sell their Thai assets at any time if the market is back in a risk-off state, he added.

However, the sale of stocks may slow down after the Stock Exchange of Thailand’s index dropped to near the key resistance level.

Meanwhile, the Asian stock markets look promising as they were supported by China’s economic recovery after lockdown measures were eased.

Poon also speculated that the baht may possibly swing sideways. He said the baht’s resistance level is 35.50 to the dollar, while its support level is between 35.20 and 35.30.

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

Published : June 28, 2022

By : THE NATION