Thailand: Baht swinging widely ahead of US Fed’s statement on GDP, inflation

The baht opened at 35.82 to the US dollar on Friday, unchanged from Thursday’s closing rate.

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

He explained that the baht is still swinging sideways ahead of the US Federal Reserve chair’s statement.

Jerome Powell is scheduled to deliver a speech at 10am US time and is expected to reiterate the central bank’s commitment to fighting inflation.

He added that the baht has not weakened much because foreign investors have continued buying Thai stocks. Foreigners have spent 10 billion baht on Thai stocks in the past four days.

The strategist has advised investors to use hedging tools like options to manage risks in a highly volatile currency market.


Published : August 26, 2022