Thailand: Baht opens stronger but may swing due to concerns over China

The baht opened at 35.54 to the US dollar on Tuesday, strengthening from Monday’s close of 35.56.

The currency is expected to move between 35.45 and 35.65 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He reckoned that the baht will likely fluctuate and weaken to its resistance level at 35.60 as the dollar is strengthening because the market is demanding safe-haven assets due to concerns about the Chinese economy and other economic factors.

However, the baht’s weakening might slow down if foreign investors buy stocks and short-term bonds.

He suggested that investors should be cautious of the rising volatility of the Emerging Asia market which might pressure the baht because the market is worried about China’s Covid-19 situation.


Published : August 16, 2022