Thailand
Thailand: Baht direction to hinge on dollar as delta variant aggravates US Covid situation
The baht opened at 33.33 to the US dollar on Monday, strengthening from last week’s closing rate of 33.37.
The Thai currency was likely to move between 33.30 and 33.45 during the day and between 33.10 and 33.60 this week, Krungthai Bank market strategist Poon Panichpibool said.
The baht’s trend would depend on the dollar’s movement and the Covid-19 situation worldwide, especially in Thailand, he explained.
Poon said that a surge in the delta variant of the Covid virus in the US would affect the dollar in the short term if it impacts the country’s economic numbers.
However, the dollar would receive support if the US Federal Reserve moves to decrease quantitative easing. The statement from the Fed must be closely watched.
Meanwhile, he expected the resistance of the baht would be at 33.50 to the US dollar, which is the level that the baht could weaken to in the short term as the situation could worsen, causing foreign investors to offload their assets.
The support level of the baht would be at 32.00, which is the price range that importers are waiting to buy on dips.
Published : August 16, 2021
By : The Nation