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Thailand: Covid-19 situation will continue to hammer baht

  • Aug 04, 2021

The baht opened at 33.04 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.01.

The Thai currency is likely to move between 32.95 and 33.10 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon explained that the baht was weakening while the US dollar could swing sideways. The baht was unlikely to strengthen soon as the Covid-19 situation in Thailand could worsen, with Wednesday seeing more than 20,000 cases.

The baht will continue to weaken until the Covid-19 situation gets better, which is expected to be in early September, he added.

Poon believed the Thai currency would not weaken below 33 if investors felt “safe” from the worldwide Covid-19 situation and hence did not need to hold onto safe-haven assets.

He expected the key resistance level would be between 33.10 and 33.20 to the US dollar, while the support level would be between 32.80 and 32.90, which is the price range that importers are waiting for as a pullback to close risks.

 

Published : August 04, 2021

By : The Nation