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Thailand: Weaker dollar, gold sell-offs bolster baht

  • Aug 05, 2022

The baht opened at 35.82 to the US dollar on Friday, strengthening from Thursday’s close of 36.

The currency is expected to move between 35.70 and 36 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said the baht might swing sideways or strengthen more than investors expect due to the weakening of the dollar and the selling off of gold.

Moreover, the baht is supported by the hope of the Thai tourism sector’s recovery.

The currency market, however, is highly volatile as the US employment data is expected to be revealed soon.

If the data is better than expected, then the market may be concerned that the US Federal Reserve will increase the interest rate, which will cause the dollar to strengthen.

Poon said some importers, especially energy companies, will buy the dollar after the baht strengthens beyond the 36 to the dollar level, while some investors may sell the dollar for profits.

The baht’s new support level would be at 35.70 to 35.80 to the dollar while its resistance level is 36.20 to the dollar.

 

Published : August 05, 2022

By : THE NATION