Thailand: Weakening trend continues for baht

The baht opened at 33.35 to the US dollar on Tuesday, weakening from Monday’s closing rate of 33.34.

The Thai currency is likely to move between 33.30 and 33.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said the baht is still pressured by weakening factors than strengthening in the short term. Foreign investors might sell more Thai bonds amid concerns that bond issues in the future might be more than expected after the Thai government raised the public debt ceiling and borrowed more.

Some investors have stopped speculating that the baht will strengthen and sold short-term bonds, due to worries of a new Covid-19 wave.

Poon added that the baht was pressured by the strengthening dollar from the risk-off state in the market. The baht was also pressured by the weakening yuan that affected the Asian currencies market from Evergrande’s default.

The key resistance level for the baht would be at 33.50 to the dollar. Poon speculated that the rising price of gold might prompt some investors to sell while the gold price rebounds.

The rise in gold price might help the baht strengthen because investors who sell gold in dollars will exchange them back to the baht.


Published : September 21, 2021

Source: The Nation