Thailand: Baht opens stronger but may weaken over China restriction worries

The baht opened at 36.08 to the US dollar on Friday, strengthening from Thursday’s close of 36.11.

The currency is expected to move between 35.90 and 36.15 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.

He said the baht was likely to fluctuate and weaken as the dollar is strengthening and the market is concerned that the Chinese government might enforce strict Covid-19 prevention measures again.

He expects the baht’s support level in the short term to be 35.90 to 36 to the dollar, while the resistance level should be 36.5.

However, he said the dollar may “invert” and help the baht strengthen if the US Federal Reserve does not signal plans to go in for a heavy rate increase at the end of this month.

Poon urged investors to beware of the currency market’s volatility before and after the US employment data has been revealed.

Published : July 08, 2022