Thailand: Baht opens stronger but may weaken if greenback rallies

The baht opened at 36.33 to the US dollar on Tuesday, strengthening from Monday’s close of 36.41.

The currency is expected to move between 36.25 and 36.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the Thai currency is swinging in a wide range and may weaken if the dollar strengthens.

However, he speculated that the baht’s weakening would be limited and it will not weaken past its key resistance level at 36.50 to the dollar.

Moreover, foreign investors did not hurry to sell Thai assets and he believes they will buy more Thai stocks when the price goes down.

The strategist advises investors to use hedging tools such as options to manage risks in a highly volatile currency market.


Published : August 30, 2022