Thailand – Beware of baht volatility: market strategist
The baht opened at 35.36 to the US dollar on Wednesday, strengthening from Tuesday’s close of 35.47.
The currency is expected to move between 35.25 and 35.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht was supported by foreign investors purchasing Thai assets, especially risky ones, with the market in a risk-on state.
However, he warned the baht could become volatile when US retail sales data is revealed and after results of a key Federal Open Market Committee meeting.
Poon said the dollar might strengthen if the market feels the US Federal Reserve will increase the interest rate by 0.75 per cent in its September meeting to tackle inflation head-on.
The baht might swing sideways in a range from 35.10 to 35.60 this week unless a new factor affecting the currency market emerges, he added.
Published : August 17, 2022
By : THE NATION